Wirecard Scandal Reaches Crypto.com and TenX Users as International Regulator Halts Services

TL;DR: In a decision directly impacting cryptocurrency debit card users of Crypto.com and TenX, the United Kingdom’s Financial Conduct Authority (FCA) announced, “On 26 June 2020, the FCA imposed a number of requirements on Wirecard including, that the firm: must not dispose of any assets or funds, must not carry on any regulated activities, must set out a statement on its website and communicate to customers that it is no longer permitted to conduct any regulated activities.” 

Wirecard Scandal Reaches Crypto.com and TenX Users

Crypto.com addressed the Wirecard situation and the FCA announcement. Concerning their Visa cardholders, “we have just been requested to stop all activity on our card programs in the UK and Europe. Our customers in those two regions will not be able to top-up their cards or transact later today,” Crypto.com explained. “Our customer funds are safe. Our team is working on processing credits to the crypto wallets equivalent to the fiat balances held on the cards. We expect this to be completed within 48 hours.”

Simultaneously, TenX issued a similar statement. “Unfortunately, our customers will no longer be able to use their cards or purchase bitcoin using credit/debit cards through the app. This will likely take effect in the next 24 hours,” TenX noted. “Please be reassured that all customer funds are safe and remain accessible as the TenX Wallet is unaffected. You can continue to store, send, and receive cryptocurrency at any time with no interruption. The safety of your funds is our top priority.”

Wirecard

Both crypto debit card companies assured they’re “working to re-enable the affected services as soon as we can,” in the case of TenX, and how they are looking at “transferring the card program to a new provider, so that we can resume the issuing of cards in the UK and Europe and allow existing and new customers to benefit from our card program again,” in the case of Crypto.com.

These are the first public comments by either crypto debit card platform in a week that saw its main financial backer go from European payments darling to missing €1.9 billion. Within days of that revelation, doubts by the company’s board emerged as to whether even the money existed at all. Not too long after, its CEO was jailed, and the very world-class accounting firm EY, which discovered the missing pounds, is said to have been negligent in its own efforts at auditing Wirecard for the last three years.

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