Today, Wirecard's shares are under pressure after the German payments group said €1.9bn of cash was missing and that “spurious cash balances” might have been provided to its auditor by a third party.
Ernst & Young told them that there were indications a trustee of Wirecard bank accounts had attempted “to deceive the auditor”, deepening the crisis at a group long seen as a great hope for Germany’s tech sector.
This is NOT a surprise if you ask anyone working in finance, this group has been known and attacked by activist funds for its opacity and misbehavior.
What is new is that the Bafin (German regulator) has been consistently backing Wirecard against allegations. Which was always kind of a mistery to me as it is not their job to do so.
Wirecard's Share Price
Crypto.com’s popular debit cards are issued by WireCard, which could prove to be a problem for the company.
While it is unlikely that user funds are directly threatened, the hole in the reserves could result in service disruptions on cards issued by WireCard. Cointelegraph reached out to Crypto.com for a comment, but did not immediately receive a response.
However, Crypto.com is not the only provider that could be affected by this.
The company is currently the debit card issuer for Wirex, TenX and CryptoPay.
Coinbase Card would probably be unaffected
As Coinbase became a principal Visa issuer in Februaryit meabs the company is at the same level asWireCard and PaySafe.
Coinbase has has not yet directly issued its own debit card, this news could accelerate their need to do so. In case things go south with Wirecard and other cryptocard providers.
I hope most Cryptocard projects will find a new way to secure their link to the FIAT financial system.
We all remember too well how the sudden collapse of WaveCrest left all crypto credit card companies without a working product.
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