Crypto firm Wyre said to shut down as CEO admits company “scaling back”

Crypto firm Wyre said to shut down as CEO admits company “scaling back”

Social media payment. hands out

Illustration: Aïda Amer/Axios

Wyre, a crypto payments company founded in 2013, has told employees that it is shutting down amid layoffs, Axios has learned.

Why it matters: The broad market downturn, combined with the crash in cryptocurrency activity, has led to a shakeout among some struggling companies.

Details: Two former employees confirmed news of the shutdown, with one noting that CEO Ioannis Giannaros informed some via email during the holiday season that the the company would liquidate, and planned to terminate services in January 2023.

  • One told Axios that the company has not yet offered a severance package, leading to concern among former workers that there may be none at all.
  • On Dec. 31, another employee posted on LinkedIn about getting laid off, writing: “#Wyre won’t continue as a profitable business.”
  • However, Giannaros told Axios via email, “We’re still operating but will be scaling back to plan our next steps.” He’s did not immediately respond to requests for further comment based on employees’ claims.

Flashback: Bolt previously announced an acquisition of Wyre for $1.5 billion, but that deal was canceled in September.

By the numbers: According to Crunchbase, Wyre has raised $29 million across nine funding rounds. Its backers include Samsung Next Ventures, Pantera Capital, and Stellar Development Foundation.

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