March 29, 2024

Cryptocurrency debit card provider accused of financial fraud

Cryptocurrency debit card provider accused of financial fraud

German payment providerWirecard AG, which is also engaged in the issuance of crypto cardsCrypto.com and TenX is accused offinancial fraud.

According to a report by EY, the company's auditor, onWirecard trust accounts are missing a claimed 1.9 billion euros (more than $ 2 billion). According to them, the Wirecard trustee tried to trick the auditor and falsify account balances. The report said:

There are indications that suspicious balances were provided by the account manager in order to mislead the auditor and create the appearance of the existence of money in the account.

The company's share price fell more than 50% after the announcement.At the moment they are trading at 54 euros apiece.

Cryptocurrency debit card provider accused of financial fraud

Wirecard's subsidiary, Wirecard Card Solutions, issues Crypto.com, TenX and Wirex debit cards. 

Chief executive Crypto.com said debit cards issued by Wirecard were "fully refundable" because customers' funds were in EMI, which is regulated by the UK Financial Conduct Authority.

The funds are in another bank (not Wirecard), as requiredFca. Wirecard does not store Crypto.com.

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Based on materialswww.theblockcrypto.com