Wirecard Bankruptcy Saga: MCO Visa Card services suspended in the UK and Europe, CRO drops by 3%

ChainNews reported yesterday that after the issuing institution Wiredcard applied for bankruptcy, Crypto.com (CRO) issued a new announcement on the evening of the 26th Taiwan time, stating that services in the UK and Europe will be temporarily suspended based on the requirements of the Financial Conduct Authority (FCA), and as of today, users will not be able to deposit or trade. [6/30 update: The Financial Conduct Authority (FCA) has now allowed the resumption of services in the UK and Europe]

Wirecard Bankruptcy Event

On June 18, concerns arose regarding a shortage of funds at Wirecard, a report by the Financial Times at 6 p.m. on the same day revealed that several banks issuing cryptocurrency credit cards faced financial issues with Wirecard, a German fintech group, stating that Ernst & Young could not confirm the existence of €1.9 billion in cash. The parent company of the cryptocurrency debit card MCO, Crypto.com, promptly clarified that its issuing funds were unaffected and were not held by the same bank.

Subsequently, on the 22nd, the company disclosed that an in-depth internal investigation revealed the €1.9 billion never existed and declared bankruptcy on the 22nd. On the 26th, the founder of Crypto.com reiterated that user funds were not impacted, but services provided by Wirecard would be, with uncertainty regarding the impact on the use of the cryptocurrency debit card MCO.

On the evening of the 26th, Taiwan time, the UK Financial Conduct Authority requested MCO to suspend services in the UK and Europe. The Crypto.com Coin (CRO) experienced a drop of over 3% in a 24-hour period. Wirecard's stock price plummeted from €100 on the 17th to €1.