Payment startup Curve has warned its customers that their services will be disrupted because the Wirecard scandal has prompted the Financial Conduct Authority (FCA) to freeze all of the payment giant’s assets.
The news follows after a week that saw Wirecard reveal that €1.9bn ($2.1bn) of its balance sheet was missing, saw its CEO Markus Braun step down before being arrested on Monday June 22 and subsequently being released on a €5m ($5.66m) bail, and culminating in Wirecard filing for insolvency on Thursday June 25.
Early in the morning of Friday June 26, the FCA ordered Wirecard UK to freeze all of its assets and services. This has affected the businesses depending on the German company’s services. One of them is Curve, the FinTech that collects each users’ multiple accounts on one card.
“Following the shutdown of Wirecard Card Solutions Limited by the Financial Conduct Authority, Curve customers have today been informed that they are likely to see a temporary disruption to their service and are advised to carry an alternative payment method,” Curve said in a statement.
“In April, Curve announced we would bring more processes in house such as card issuing and e-money and move away from a reliance on Wirecard. This disruption is expected to last for a limited time only and we are focussed on completing this transition as quickly as possible.”
It is not the only company to have faced issues because of the Wirecard scandal. ANNA Money also informed its users earlier on Friday June 26 that it had been forced to suspend all cards and all accounts because of the affair.
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