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Crypto debit card issuer, Wirecard AG loses $2billion

Crypto debit card issuer

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Headquartered in Munich, German payment processor, and crypto debit card issuer of both Crypto.com and TenX debit card, Wirecard is currently in a mess after it lost $2 billion worth of cash.

The firm’s auditor in a statement released could not provide evidence for the said amount in the firm’s trust account. They said in the release that false balances have purportedly been submitted by third parties to deceive the auditor.

The firm said further in the statement that trustees possibly have provided these false balances of account holding banks to deceive the auditor.  However, to get to find the missing funds, the Crypto debit card issuers are working closely alongside the auditor.

Wirecard AG holds publishing annual financial statement

The $2 billion loss has made the firm put and hold on publishing its annual financial statement for the year 2019 for the third time. Hence if this financial statement cannot be made ready by Friday, June 20, loans made to Wirecard AG amounting to approximately EUR 2 billion can be terminated.

The $2 billion the crypto debit card issuer firm lost has plunged shares of the company by over 50 percent. The firms share trades at around $60 as at press time.

Crypto debit card issuer, Wirecard’s subsidiary

The firm’s subsidiary, Wirecard Card Solution, issues debit cards to crypto.com’s MCO Visa Card, TenX’s Visa Debit Card.

Crypto.com CEO Kris Marszalek said the credit card that Wirecard AG issues are fully prefunded i.e., clients load money into the card before they can be spent. These funds are held by an electronic money institution (EMI) regulated by the U.K. Financial Conduct Authority (FCA). He added:

The funds are held at another bank (not Wirecard) as required by the FCA. To further clarify, Wirecard does not have custody of any crypto held by Crypto.com,

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Muhaimin Olowoporoku

Muhaimin loves writing on crypto news aside from being a crypto enthusiast. He has a knack for analysing issues and updating people on what's happening around the globe. He believes that blockchain and cryptocurrency are the most useful systems of mutual trust ever devised.

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