Wirecard $2 Billion Scandal: Firm Files for Insolvency, Ex-CEO Arrested, User Funds Safe

Scandal-hit crypto card issuer Wirecard AG, a firm that has filed for insolvency because of its missing $2.1 billion – but customer funds appear to be safe, for now. The Munich-based payments processor also said it had yet to reach a decision on whether or not to file insolvency proceedings for its subsidiaries such as Wirecard Card Solutions (WCS).

That’s because the concerned crypto cards are pre-funded and funds are held by Wirecard Card Solutions, an entity with its headquarters in the UK, its own board of directors, and regulated by that country’s financial authorities. “Debit cards issued by Wirecard for Crypto.com are fully prefunded,” said Crypto.com chief executive officer Kris Marszalek.

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