The British regulator suspended the work of the "daughter" Wirecard after the loss of € 1.9 billion

06/26/2020

Roman Petrov

Financial ManagementUK Supervision Authority (FCA) has suspended Wirecard’s subsidiary of payment card issuers to protect customer money after discovering a shortfall of € 1.9 billion

The regulator banned Wirecard Card SolutionsLimited «dispose of any assets or funds» and engage in any regulated activity. The FCA ordered the firm to notify its clients about this.

«Events continue in Germany regardingcompanies closely related to Wirecard. Wirecard's parent company, Wirecard AG, based in Germany, is currently the subject of enforcement actions and insolvency proceedings,” the FCA noted.

The agency emphasized that it imposed restrictions on any transfers of Wirecard funds immediately after receiving news about the loss of € 1.9 billion by the parent company. Wirecard AG itself is not regulated by the FCA.

Wirecard issued payment cards for cryptocurrency companies Crypto.com, TenX and CryptoPay.

Crypto.com stated that the regulator asked to stop all operations with cards in the UK and Europe. The company plans to transfer the program to a new provider and resume issuing cards.

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TenX assured customers that their crypto and fiat assets were safe as they were not controlled by Wirecard.

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Following the discovery of a wirecard CEO shortage, Marcus Brown immediately resigned. He was later arrested, and the prosecutor's office in Munich did not exclude the possibility of criminal charges against him.

Recall that Wirecard AG decided to go through bankruptcy after the loss of funds, which amounted to about 32% of the assets under management.