After Wirecard filed insolvency yesterday, Crypto.com has said it has been impacted in the UK Europe and will return every of its customer’s funds.
In a statement today, Crypto.com says it has been ordered by FCA to stop all activities on the MCO Visa Cards issued by Wirecard UK. Crypto.com’s customers in the UK and Europe will not be able to make any transaction on the card from today.
The crypto platform, however, says it will find a means of getting a better alternative for its customers across the region while also working on returning customer’s funds to their fiat balances on the cards within the next 48 hours as it moves to transfer the card program to another company.
This week, Wirecard AG’s auditors declared the firm has been embroiled in a complex fraud, up to the tune of $2 billion. The firm says it has tabled the issue before the court, indicating it has filed for protection.
Ernst & Young made the public realize the anomaly after it refused to sign off Wirecard’s 2019 financial report. The decision made Wirecard announce it could not account for the missing billions of euros.
What greeted the event afterward was the arrest of the company’s former Chief Executive Officer Markus Braun before the firm filed for insolvency Thursday.
The auditors said Wirecard offered false statements and confirmations regard escrow accounts in the 2019 audit, making the auditing firm conclude that the action clearly showed sophisticated fraud that involves different key players across diverse institutions that may not be easy for the most robust audit procedures to unearth.
KPMG also looked into the affairs but was unable to get the needed data to audit the firm’s past revenues. The auditor also blamed its third-party partners for their unwillingness to corporate.
Both EY and KPMG are parts of the Big Four accountants responsible for auditing big firms across the world. They have been criticized in the U.K for failing to flag the skirmishes of some firms before going bankrupt.