Munich, Berlin, March 21, 2024 – Complaints against the cryptocurrency service provider Wirex are mounting in Germany. A growing number of investors report that they are unable to withdraw the digital currencies they have deposited on the platform. Several affected investors have already taken legal action and informed the Federal Financial Supervisory Authority (BaFin).
Wirex operates without a German crypto custody license.
What seems particularly problematic is that Wirex is specifically targeting German customers with its offering, even though the company does not possess the crypto custody license required under the German Banking Act (KWG). The Italy-based company operates a German-language website at wirexapp.com/de and actively solicits customers in Germany.
” The legal situation is unambiguous: Every provider that conducts crypto custody business in Germany requires the corresponding authorization from BaFin. Wirex demonstrably does not possess this ,” explains lawyer István Cocron, who already represents several aggrieved Wirex customers.
Legal proceedings initiated at the Regional Court
Attorney Cocron has already filed a lawsuit with the relevant regional court on behalf of an affected client. Although Wirex was requested to comply out of court and a corresponding deadline was set, the company refuses to release the cryptocurrencies entrusted to its custody.
” The number of affected users is growing steadily. Numerous other users are describing similar experiences in various online forums and social networks,” reports lawyer Cocron. “This points to a structural problem at Wirex .”
BaFin is investigating the matter
The Federal Financial Supervisory Authority (BaFin) has been informed of the situation and is now evaluating whether regulatory action needs to be taken against Wirex. The case could have far-reaching consequences, as it raises fundamental questions about the regulation of foreign crypto service providers in the German market.
Legal assessment and possible courses of action
Affected investors should act promptly to protect their claims. “The longer the waiting period, the more complicated it could become to enforce legitimate claims ,” warns attorney Cocron. Comprehensive information on this topic can be found on his website.
The legal assessment is clear: If a company holds crypto assets for third parties without the necessary authorization, this constitutes a financial service requiring a license. Acting without the required authorization can not only lead to regulatory consequences but also to further legal repercussions.
Conclusion: Exercise caution when selecting crypto service providers
The Wirex case underscores the significant risks associated with unregulated crypto platforms. Investors should always verify that such services possess the necessary licenses and regulatory approvals before using them. BaFin maintains a publicly accessible directory of authorized crypto custodians, which should be consulted before using any platform.
Lawyer István Cocron offers legal assistance to affected investors and is following further developments in the Wirex case with increased attention.
