Another lesson for those that are using custodial exchanges and wallets - page 2.

Kavelj22

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Quote from: LoyceMobile on January 08, 2023, 01:22:15 PM

So they're only stealing 10% of your money. They should call it a bail-in, that's what banks would do.

This is a really strange decision, especially since the platform will officially stop working after offering to buy it from the Bolt platform, as most reports indicate. On the other hand, the decision seems somewhat absurd because the procedure applies to the rate of daily withdrawals, meaning that the user can withdraw 90 percent of his savings, then within the next 24 hours withdraw another 90 percent of the remaining amount, and so on until there is nothing left. But the situation will be more complicated if the daily withdrawal rate does not exceed a certain limit, meaning if you have 5 bitcoins and the daily withdrawal limit is 1 bitcoin, you will be able to withdraw the full amount within about a week. This is very suspicious.

LoyceMobile

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LoyceV on the road. Or couch.

So they're only stealing 10% of your money. They should call it a bail-in, that's what banks would do.

Merit.s

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I will advice customers to withdraw the 90% funds left in the payment platform, in other for them not to come up with another scam or hack stories,because it is like they are about to crash due to insufficient funds on the platform. Everyday we keep on seeing platforms crashing due to mismanagement and customers using these exchanges or platforms lost at the long run,this is enough lesson for crypto users to know that a noncustodial wallet is your own personal bank and only you can keep your coins safe. Trust no centralized system no matter their level of operation and for how long they have gained customers trust.

Yogee

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Quote from: mk4 on January 08, 2023, 12:25:39 PM

....Man, I don't want to make quick conclusions, but this really smells like insolvency.

Well.... https://www.axios.com/2023/01/03/wyre-shutdown-crypto-winter

Scaling back operations certainly means they are being hit by heavy losses and likely running out of cash. Also reported in that article is the failed deal to purchase the said payment platform for $1.5 Billion last April 2022. Anyone following the news should have expected this move by Wyre to avoid a complete shutdown.

mk4

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"We are modifying our withdrawal policy. While customers will continue to be able to withdraw their funds, at this time, we are limiting withdrawals to no more than 90% of the funds currently in each customer account, subject to current daily limits."

Man, I don't want to make quick conclusions, but this really smells like insolvency. You can slightly justify having a set amount of daily withdrawal limits due to regulatory reasons, but having a set percentage? That's just too fishy imo.

ajiz138

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Quote from: _act_ on January 08, 2023, 06:40:40 AM

Wyre users are able to withdraw, but they can only withdraw 90% of their money. Assuming you have $1000 on the exchange, you can not be able to withdraw $100 and Wyre users will be panicking about their money by now. Can you see that the more money they have on Wyre, the more money they can not be able to withdraw. On noncustodial wallet, you can send all your coins on the wallet at anytime.

Previously it was also the same as Juno urging its users to withdraw due to uncertainty whereas they involved Wyre as a partner who could control this.
Source: https://cointelegraph.com/news/crypto-firm-juno-urges-users-to-withdraw-after-uncertainty-with-custody-partner

As for this news and it's true that Wyre is having a problem so users who want to withdraw at 90% limit this will be their panic but I don't know what the problem is but what is clear from the tweet is making an important change in management.

It is clear from the previous case that exchanges are vulnerable to our assets, so don't ever trust them, even though they have been operating for a long time, if our assets on the exchange are not ours.

But still there are always people who believe in the exchange. huh

_act_

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Quote from: EarnOnVictor on January 08, 2023, 11:14:35 AM

It's so bad to hold one's crypto in any decentralized wallet, this is part of the repercussion.

You have a very good post but you make a mistake, I guess you are talking about custodial wallet and centralized exchanges, that we should not save crypto on them, instead we should use noncustodial wallet which is what we are talking about. On decentralized exchanges, you can send coin from your noncustodial wallet and receive the coin you exchange for on noncustodial wallet, they are not the same as centralized exchanges. What we against is that people should not save their coins are centralized exchanges and custodial wallets because you do not have the keys. We can not say a wallet is decentralized, if we have to say that, it means we should refer to those wallets that you run your node like bitcoin core.

EarnOnVictor

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Another big lesson indeed! Well, thank goodness that I already know BTT, I would have been a victim of such as close as early last year. It's so bad to hold one's crypto in any centralized/custodial exchange/wallet, this is part of the repercussions. For those looking for trusted wallets, @theymos advice here will do a lot of good: https://bitcointalksearch.org/topic/m.61293646

And for clarity, this (Wyre) is not an exchange but a payment platform, it's clearly stated in the article. Can you imagine having $20,000 in such a payment platform and waking up to the news as shown in the image below:

It's just yesterday's event, so new. This is a company that was founded in 2013 and has built the trust of many, only to swindle them with their money when perhaps the amount to gain through it is now much. This is preposterous, unfortunately, such would continue to happen unabated. And see what I found on Google while inquiring about the Wyre company with some search words.

The company has processed over $1 billion as of October 2020, how much more thereafter?

This is why I like to advocate for more regulation of cryptocurrency, particularly the centralised ones so that anyone would not just cheat people under any guise and go away with it.

_act_

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I do not know if Wyre is a custodial wallet or an exchange. I decided to post this on beginners and help for the beginners to learn another lesson which is not new again. But moderator can decide to move it to the appropriate board.

This is not about hack but it is about not you key not your coin. On noncustodial wallet, you are the owner of your coin, unlike on custodial wallets and exchanges that you are not the owner because the keys are not yours.

See the interesting news:
https://cointelegraph.com/news/wyre-imposes-up-to-a-90-withdrawal-limit-for-all-users

Wyre users are able to withdraw, but they can only withdraw 90% of their money. Assuming you have $1000 on the exchange, you can not be able to withdraw $100 and Wyre users will be panicking about their money by now. Can you see that the more money they have on Wyre, the more money they can not be able to withdraw. On noncustodial wallet, you can send all your coins on the wallet at anytime.

Topic: Another lesson for those that are using custodial exchanges and wallets - page 2. (Read 330 times)