Big German fintech company Wirecard, the debit card issuer for Crypto.com, got into a mess after employees of the company allegedly committed book fraud, causing wastage. nearly 2 billion euros in cash.
As reported from the Financial Times on June 18, one of the four major auditing firms, EY, “did not record the existence of € 1.9 billion in cash” or approximately $ 2.1 billion.
According to a statement from the company, the trustee for the Wirecard bank account had taken actions to deceive the auditors, thereby falsifying the cash data.
The company’s share price plunged 50% on Thursday, after details of the incident broke out.
According to a source from the Financial Times, Wirecard employees in Dubai and Dublin appear to have inflated sales and profits for more than a decade.
Is the crypto debit card in turmoil?
Crypto.com is likely to be heavily affected by the information above when the unit’s debit card is accordingly also issued by WireCard.
While the owners of the above funds will most likely not be affected, the storage gap will likely cause the quality of WireCard’s card service to plummet.
However, Crypto.com is not the only name affected by WireCard. Accordingly, this provider also supports the debit card service for Wirex, TenX and CryptoPay.
Another special name is Coinbase Card, which is supported by PaySafe Financial Service. Moreover, Coinbase has been partnering with Visa since February, bringing the service’s reputation on par with WireCard and PaySafe. However, the company has yet to move to issue its own debit card.
It can be said that the crypto debit card market is making great efforts to find more large customers. In January 2018, WaveCrest’s sudden demise shook many crypto companies.
It is not clear whether the current WireCard case caused the same problems, but this is completely different from WaveCrest, as the unit has been stripped of its Visa certification.
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