Crypto.com To Refund 100% Of Customer Funds As FCA Suspends Wirecard

KEY POINTS

Crypto.com refunds customers of its MCO Visa Cards, a program enabled by Wirecard's U.K. Subsidiary Wirecard Card Solutions
The FCA forced WCS to cease operating to prevent the transfer of assets to its insolvent German parent company
Crypto.com said it is looking for a new provider for its MCO Visa Cards

Crypto.com announced a 100% refund to customers using its crypto card program after the card’s issuer Wirecard Card Solutions was forced to stop all activities in relation to the ongoing Wirecard fraud scandal.

In a statement, Crypto.com said the notice came from the Financial Conduct Authority (FCA), which asked the company to stop all card program activity in the United Kingdom and Europe. Customers in both regions will not be able to use the Crypto.com branded MCO Visa Cards. Wirecard Card Solutions (WCS) provided the technology to enable Crypto.com to issue the cards.

Crypto.com stated earlier all credits have been processed already and the company has already refunded customers the crypto equivalent of the fiat held of the MCO Visa cards.

From the start, Crypto.com’s card program has been one of its most important products. With the collapse of Wirecard and the current situation with WCS, Crypto.com said it will look for potential new providers for its MCO Visa cards.

Check out the FAQ for more details - https://t.co/By8PdLFHoI
— Crypto.com (@cryptocom) June 27, 2020

Wirecard Card Solutions’ parent company Wirecard filed for insolvency after a fraud scandal that saw its shares plunged by 85% in the German Stock Exchange. Wirecard, which was once touted as Europe’s largest fintech, claimed the money does not exist. However, independent investigation, including the one conducted by the Financial Times pointed to fraudulent accounting processes.

Wirecard Card Solutions, which is run separately from Wirecard, initially assured its customers the German company’s businesses would not have bearing on the U.K. payments firm. But the FCA forced it to cease operating and said it had done so to ensure WCS’ assets would not be transferred to the insolvent parent company. In addition to Crypto.com, other companies using WCS’ technology include Anna app, Curve, and TenX, another cryptocurrency card platform. Both Crypto.com and TenX were initially assuring their customers their funds continue to be safe because they were held by a different institution.