Crypto Platform Advises Users to Withdraw Funds Amid Custody Issues
The cryptocurrency firm – Juno – advised its users to withdraw their assets and store them in self-custody wallets or sell their holdings for cash because of “uncertainty” with its partner.
The company plans to solve the issues by finding a new associate.
A Warning Before the Storm?
In a recent Twitter thread, Juno revealed that its custody partner has been experiencing certain problems. As such, the entity temporarily halted cryptocurrency purchases on its platform and auto-converted the stablecoins – USDC, USDT, mUSDC – to USD.
It also encouraged customers to withdraw their ownings and transfer them into self-custody wallets as a protection measure. The firm added that clients could sell their stash for fiat in case they don’t want to rely on non-custodial wallets.
2/ Juno as a platform doesn’t custody crypto assets & relies on our crypto partner for these services.
Due to uncertainty with our crypto partner, we have taken preemptive action in the interest of our customers.
— Juno (@JunoFinanceHQ) January 4, 2023
Juno has increased daily cryptocurrency withdrawal limits by five times for all “metal users” to cope with the potential surge of transactions and asserted that all banking and card-related services continue to function effortlessly.
The valuation of crypto assets stored on the platform has shrunk to $1.25 million after the firm shared its recommendation with customers.
“We are actively reaching out to customers and asking them to self-custody,” Juno stated.
The organization seeks to restore all operations as soon as possible and is looking to collaborate with a new custody partner. It also vowed to stay on its crypto course, continuing to “build and ship like we always have.”
JUNO’s Crash in the Past Several Months
The price of the native token of the platform – JUNO – performed quite well during the first quarter of 2022, reaching an all-time high of over $45 in March. The intensifying bear market, though, took its role, and the asset started nosediving.
It lost nearly 90% of its USD valuation in a matter of two months and continued its downtrend until the end of last year.
The troubling news about the company’s custody partner and the disabled crypto purchases have also negatively affected JUNO, which currently trades at around $1.13 (a 97% decline compared to the peak level).
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I’m a journalist who specializes in investigative reporting and writing. I have written for the New York Times and other publications.