Wirecard AG, a German payment processor, applied for insolvency Thursday in the wake of a widening $2 billion missing crisis. The massive accounting fiasco has contributed to the indictment of the CEO of Wirecard AG, Markus Braun, and has angered and hurt Payoneer card owners hardest. Wirecard Card Solutions Limited (WCSL) in the UK, as they are issued by its subsidiary.
In fact, Wirecard UK, a division of the German transaction processor and financial service company, has been issued the order to suspend all of its activities until further notice by the Financial Conduct Authority of the United Kingdom (FCA). The firm has been ordered not to dispose of any of its assets, funds or regulated activities that follow.
In turn, they will make a disclaimer on the fact that the organization is not permitted to carry out any supervised activities. The decision by the FCA to achieve this revolves around the primary fact of protecting Wirecard UK customers ‘ interest and money.
Both prepaid card operations are frozen in respect to the resolution of the FCA. They released a notice, stating:
“The fca has conveyed that they have taken those measures with the main objective of protecting wirecard customers ‘ interests and money. You will be immediately unable to transfer the funds on your card or make fresh payments on your card until future intervention by the fca. Any funds exceeding your card ‘s maximum balance shall be held by the payer and shall therefore not be affected by the temporary freeze of the fca”.
Any funds exceeding your card ‘s maximum balance shall be held by the payer and shall therefore not be affected by the temporary freeze of the fca.