The auditing firm Ernst&Young (EY) discovered a shortage of more than $2 billion from Wirecard, which issued cryptocurrencydebit cards for Hong Kong firms Crypto.com and TenX.
EY could not confirm the availability of the named amounton the trust accounts of the German payment service Wirecard, which is already clarifying this situation with the auditor. Wirecard management suggested that this amount could be reported as a fictitious balance by a third party, in order to deceive the auditors and mislead them about the existence of these $ 2 billion in balances.
Following this news, Wirecard shares fellmore than 50%. It is reported that Wirecard is postponing for the third time the publication of its annual financial statements for 2019. If it is not published by June 19, loans of € 2 billion from Wirecard AG may be canceled.
CEO of Crypto.com Chris Marszalek reports that the cards issued by Wirecard for his company are fully prepaid. This means that user funds are held in separate client accounts at the Electronic Money Institute (EMI), which is regulated by the Financial Supervisory Authority (FCA) of the United Kingdom. Marsalek added that in accordance with FCA requirements, clients' money is stored in another bank, and Wirecard does not provide custodial services to Crypto.com clients.
In November, Crypto.com announced the imminent launch of its own cryptocurrency exchange supporting nine crypto assets, including BTC, ETH, XRP, EOS and its own CRO tokens.
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