Reuters
The UK’s economic control body, the Financial Conduct Authority, ordered the UK subsidiary of the successful Gerguy fintech Wirecard to abandon all regulated activities after a bankruptcy filing through its parent company.
The Financial Conduct Authority ordered Gerguy’s UK-founded financial technology subsidiary, Wirecard Card Solutions Limited, to suspend all regulated activities and prohibited the apple in question from unloading assets or budget with immediate effect.
“After last week’s news that nine billion euros were missing from Gerguy’s Apple credit card accounts, we immediately imposed the essentials in Apple’s UK company’s operations so that it doesn’t pay or decrease the amounts it has for its customers, according to its instructions.” , added the FCA.
All customer coins will be frozen, the FCA added.
The move comes as Wirecard filed for insolvency on Thursday following a week which saw the resignation and arrest of its former CEO Markus Braun.
Wirecard’s percentage charge has been in red numbers since last week, when its auditor EY said it won’t track 1 billion euros (about $2 billion) on its balance sheet. It has lost about nine8% of its market position capitalization due to the birth of 2020.
The corporation had said its missing currencies were in two banks in the Philippines, but later the Philippine central bank rejected the claim.
The FT reported Friday that Valdis Dombrovskis, the EU’s executive vice president on economic policy, is writing to the European Securities and Markets Authority to assess whether Gerguy’s market position regulator BaFin has failed to handle the Wirecard crisis.