TenX and Crypto.com customers can no longer use their crypto debit cards in the UK and Europe, the companies announced in statements today.
The abrupt freeze occurred because the company that powers them, Wirecard, filed for insolvency today on allegations that lied to auditors over $ 2.1 billion of your funds. His auditors, Ernst & Young, did not ask for the records for three years, reported he Financial times.
Wirecard now says those funds probably “don’t exist,” and that it misled investors about how it made its profit. Former Wirecard CEO Dr. Markus Braun turned himself in to the German authorities earlier this week, accused of market manipulation and false accounting.
Due to their insolvency, British and European customers of Crypto.com and TenX are unable to use their crypto debit cards.
“Our customers in those two regions will not be able to reload their cards or transact later today,” he said. Crypto.com in a statement.
“Our clients will no longer be able to use their cards or buy bitcoins with credit / debit cards through the application. This will probably take effect in the next 24 hours, “he said. TenX in your statement.
Client funds, however, are safe. UK financial regulators ensured that the money was insured and held in a separate bank.
“You can continue to store, send and receive cryptocurrencies at any time without interruption. The security of your funds is our top priority, ”said TenX.
Crypto.com said the team is working on “processing credits for crypto wallets equivalent to the fiduciary balances on the cards.” He hopes to finish this within the next two days.
Crypto.com is also trying to find a new provider for its crypto debit cards so that it can continue to issue them in the UK and Europe.
Crypto.com also offers crypto debit cards in the US and Singapore. Although your US cards are issued by Metropolitan Commercial Bank, your Singapore cards are issued by Wirecard’s Singapore affiliate, Wirecard Singapore.
Singapore has yet to prevent Crypto.com from issuing cards, but its financial authorities have ordered Wirecards to keep the funds in local banks, reported Reuters.
