Wyre Lifted The 90% Customer Withdrawal Limit After Receiving New Funding
- Following the acquisition of additional money, Wyre has lifted the 90% withdrawal cap it imposed on users earlier this week.
- The business declared that it had secured funding from a “strategic partner” that would enable it to carry on with business as usual, including starting to accept deposits once more.
- Prior to it, Wyre imposed withdrawal caps, preventing users from completely emptying their accounts.
Wyre was able to eliminate its previously implemented 90% client withdrawal cap thanks to a new source of revenue.
The San Francisco-based fintech company claimed on January 13 that it had acquired funding from a “strategic partner” that enables it to carry on with business as usual, including once more accepting deposits.
In an effort to continue operating despite financial difficulties and to better prepare the company against any future industry volatility, Wyre announced earlier this week that it would restrict customer withdrawals.
Just two days after former employees raised the prospect of the company’s closure, the restrictions were put in place. Wyre gave a brief explanation of the withdrawal cap at the time and stated that it was in the greatest interest of the community.
According to the most recent update, Wyre claims that after acquiring additional capital from an undisclosed strategic partner, the cap has now been lifted, and full withdrawals and deposits are once again allowed.
“As a regulated financial institution, we’re proud that we were able to continue delivering our services in a safe and sound manner without pausing withdrawals,” it added.
The company said that it would continue to operate as a benefit to customers after the recent event:
“We’ll continue to operate with transparency and with the best interests of our customers and partners at heart. Thank you for trusting us with your business. We will continue to put our customers first as we return to growth.”
75 staff were let go by the company earlier this month as rumors of a possible closure spread. Wyre asserted that it was still in operation and refuted the rumors.
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