The Financial Conduct Authority has requested Crypto.com to stop all activity on its cards issued by Wirecard AG in Europe and the UK.
According to an official statement, Crypto.com's clients in those two regions will not be able to top-up their cards or transfer funds with cards starting from today.
Crypto.com CEO Kris Marszalek claims all customers "will receive 100% credit back to their crypto wallets within 48 hours."
This morning, the FCA effectively shut down Wirecard UK, the issuer of our cards in Europe.
— Kris | Crypto.com (@Kris_HK) June 26, 2020
Our EU/UK cards will stop working today. All customers will receive 100% credit back to their crypto wallets within 48 hours.
We’re moving the card program to a new vendor. https://t.co/jEdxMuwipq
"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," the company wrote in the statement.
Crypto.com also says it is working on transferring the card program to a new provider, so that it can resume the issuing of cards in the UK and Europe.
Earlier, Wirecard AG, a debit card issuer, filed for bankruptcy after auditor Ernst & Young (EY) failed to confirm the company had €1.9B in its accounts.
The company's management team filed for bankruptcy at a Munich court "due to impending insolvency and over-indebtedness." Wirecard's collapse could become the first bankruptcy of a German company listed in the stock index DAX.
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