- >Crypto.com Reactivates Cards Shortly After Wirecard Scandal
Crypto.com Reactivates Cards Shortly After Wirecard Scandal
The Germany based payment processor company Wirecard found itself unable to find $2.1 billion dollars last week. This is a massive amount of money to go missing. The effects of this loss of funds was felt in the cryptosphere. Crypto.com, a leading crypto visa debit card provider had its signature card issued through Wirecard. As the debacle unfolded, it became clear that the services provided by Wirecard were no longer going to be available to Crypto.com. How companies handle unpredictable situations says a lot about the long term viability of the organization. Crypto.com demonstrated excellence in customer service, and disaster planning. They were able to reinstate the functionality of the card, as well as reimburse funds within days of the events.
Keegan Francis | Oct 13, 2020
The Wirecard Scandal
Earnst and Young were put in charge of monitoring the books, and conducting audits for Wirecard. More details are being released about the quality of the audit process conducted by EY. Earnst and Young maintain the standpoint that the scandal is a result of multinational fraudulent and coordinated efforts. The kind of activity that was taking place within Wirecard was extremely difficult for auditors to detect. Other followers of the story take the standpoint that not enough was done to detect the problem ahead of time. Legal charges are being filed against EY by Wirecard investors for failing to sufficiently conduct past audits.
Crypto.com’s Dedication to Security
As seen on the Crypto.com security page, the company clearly values application wide security. All too often, the public sees fancy pages dedicated to security, with little evidence to back up the claims. In light of the Wirecard scandal, Crypto.com has managed to demonstrate three things.
- Strong customer service
- Backup plans in case of connected third party failure
- Valuing of user funds and continuity of service
One remarkable aspect of the way that Crypto.com has handled this situation was how quickly they took action. The speed at which Crypto.com acted indicates that contingency planning is something that the company values. Communication from the company came right from the CEO himself. Kris Marszalek was active on twitter the hours and days following the news of Wirecard’s insolvency. As promised by Crypto.com, all user funds were credited to user balances. The core Wirecard infrastructure has since been reactivated, allowing Crypto.com cards to be used for purchases once again. These events show that Crypto.com has employed a powerful customer first strategy with precision.
What is Next For Crypto.com?
Crypto.com is the most widely available cryptocurrency visa debit card. This fact allows Crypto.com to grow aggressively, and assert its dominance as the top crypto card provider. In May, Crypto.com gave two announcements. The first is that it is now available to 31 different European markets. The second is that it received a green light for the Canadian market. The Canadian financial regulatory environment is one of the toughest in the world. How Crypto.com just handled the Wirecard scandal should earn them favor when dealing with Canadian regulators. While scandals this size often take out the small players in the game, Crypto.com has demonstrated that it is no small player. They do in fact have what it takes to hang in the big leagues. Crypto.com has its sights set on global mass adoption of cryptocurrency.