Wirecard AG (1999), the issuer of the Crypto.com and TenX debit cards, is really in big trouble.
According to the auditor of the company EY, there would be shortages of over $ 2 billion in cash balances on Wirecard's trust accounts. Wirecard said that the "spurious" balances may have been provided by a third party "in order to deceive the auditor".
Wirecard: "Wirecard's board of directors is working intensively with the auditor to clarify the situation"
Following the problem, Wirecard delayed the publication of its annual and consolidated financial statements for 2019 for the third time. The company said: "If certified annual and consolidated financial statements cannot be made available until June 19, 2020, approximately $ 2 billion in loans granted to Wirecard AG can be closed"
The company's shares declined by more than 50% within minutes of the announcement (~ $ 60 each). The Wirecard Card Solutions in fact issues the Crypto.com MCO Visa Card and the TenX Visa Debit Card.
Cryto.com's "CRO" has certainly been affected by all this situation (June 27), although it should be stressed that the big problem should hit MCO (the crypto.com token utility used to reserve the card and received as cashback).
CRO probably saw a decrease because someone saw the situation sold (CRO is the crypto used on the exchange).
Kris Marszalek, CEO of Crypto.com, said that the debit cards issued by Wirecard for the company are held by an electronic money institution (EMI) regulated by the United Kingdom's Financial Conduct Authority (FCA) in separate customer accounts.
In other words, the funds are held at another bank (not Wirecard) as requested by the FCA (therefore Wirecard does not hold CRO or MCO of Crypto.com). The big problem is that the cards will be blocked and the situation remains unclear.
TenX instead, launched in Austria and Germany, allows you to spend cryptocurrency without having to reload manually.
It supports Bitcoin (BTC), Ethereum (ETH) and Litecoin (LTC), which can be spent wherever Visa is accepted (thanks to the exclusive automatic card conversion capability). Regarding TenX (PAY) there were no big jolts because the crypto has been in loss for about 1 year (-80%) and in the last week it has been recorded only -1.1%. Even old Revolut cards had Wirecard as issuer. Same goes for Curve.