1/ *sigh* Let's dig into the tragedy of http://Crypto.com  (this is a website but also the name of the project ; $CRO = cashtag).

A day or two ago, they shared a press release telling investors that they hit a 'roadblock' in their EU card launch (pic attached)

1a/ Notably, in our Telegram channel ( http://t.me/librehash ), we published research on May 20th, 2020 (a month prior to their announcement), explaining why http://crypto.com 's prior announcement claiming that they had received the "green light" for the EU was bogus

2/ *Quick Background Information*

http://Crypto.com  (formerly Monaco) is a project whose premise is to allow users to spend cryptocurrency at various retailers / stores using a Visa debit card in a traditional manner (with the added option to pay w crypto vs. fiat)

2a/ The value proposition of the project was / is that its native digital asset ($CRO) will provide returns for 'holders' in the form of increased valuation due to the issuance of their cards creating increased demand (users using $CRO tokens via the Visa card).

3/ If you're incredulous - that's understandable. However, it is worth noting that $CRO (Monaco) *did receive the clear from Visa in 2018* (see below)

[Reference: https://www.bloomberg.com/news/articles/2017-11-01/visa-approves-monaco-cryptocurrency-card-for-singapore-residents]

3a/ However, please note that this release was only *approved for Singaporean residents* (the region matters here, a lot).

Additionally, this issuance was facilitated by their *card issuer* (another important fact).

Their name = **Wirecard AG**

This is the land mine.

4/ Apparently, Financial Times published a leak from one of their former executives exposing alleged nefarious accounting practices at Wirecard AG (i.e., cooking the books).

This led Wirecard AG to declare war on FT (via litigation threats).

That was a bad decision.

5/ Here is the link to one of the first exposes by FT on Wirecard AG = https://www.ft.com/content/d51a012e-1d6f-11e9-b126-46fc3ad87c65

As one can see from the attached screenshots - FT clearly had the lead on what appeared to be a massive fraudulent scheme taking place BTS at Wirecard AG

6/ (Relevance to http://Crypto.com ) ; Its tempting to ask, "What does this have to do with http://Crypto.com ? Seems like this was fraud that was above their heads, right?"

Perhaps. But the issue is that Wirecard is *needed* for http://Crypto.com  to issue cards

7/ Remember above when we noted that Wirecard was given the clear from Visa to issue cards via Wirecard in *Singapore*?

Well that Singaporean branch of Wirecard = Wirecard Singapore PTE LTD

(source: https://www.newsbtc.com/2018/09/06/crypto-com-to-offer-crypto-to-fiat-visa-prepaid-cards-in-singapore-and-hong-kong/)

8/ What's troubling about this is that *Wirecard Singapore PTE LTD* had its offices RAIDED by Singaporean authorities in the early 2019, prompted by alleged fraudulent accounting activity related to what FT has been reporting on (reference = https://www.straitstimes.com/business/police-raid-wirecard-entities-in-singapore-after-reports-of-fraud-allegations-at-payments)

8a/ Main points here:

A) Visa did give http://Crypto.com  the clear to distribute cards - but restricted it to Singapore to start

B) http://Crypto.com 's issuer = 'Wirecard AG' (no problem)

C) However, Wirecard AG's offices in Singapore were raided

9/ In the spirit of thorough investigation though, we didn't stop there.

We decided to look at what information Visa had on its website regarding their relationship with Wirecard (because that is the determining factor for legitimacy)

9a/ (Validating Relationship Between Visa + Wirecard)

Latest press release about Wirecard + Visa = https://www.wirecard.com/en-us/company/press-releases/wirecard-and-visa-collaborate-on-fintech-fast-track-program (announces that they're looking at expanding into the MENA region - fair enough]

9b/ (Details About Visa's 'Partner Program' <-- needed to do what $CRO proposes )

Also mentions that this partnership / co-expansion effort is facilitated through Visa's Fast Track program (?) ; link to the 'Fast Track' program can be found here = https://partner.visa.com 

9c/ (Validating Wirecard's Participation in the Partner Program Via Visa's Directory on Their Site):

[Link can be found here = https://partner.visa.com/site/partner-directory.html] ; you'll have to search for Wirecard manually (its an AJAX page)

9d/ Requirements to Become a Partner With Visa (same link from #3)

Prospective applicants must have:

A. "A banking relationship"

B. "An issuer processor"

C. "A program manager"

10/ At the end of this winding road - we find that Wirecard was *never cleared to launch cards in the EU* (the specific regions they can be a 'partner' for under Visa's program are pictured below - accessed via Visa's directory on their site)

11/ So how could http://Crypto.com  have received the 'green light' to distribute cards in Europe?

12/ And, given what we've read above - should it be any surprise to us that they would be publishing this notice to their investors a little over a month later claiming "issues" with their card issuance plans?