5050 Poker used segregated player funds to finance its loss making operations, the company’s board of directors said Wednesday, as it accused management and independent auditors in Sweden and Malta of providing false information regarding the company’s finances.

The company’s board said the initial impact of changes made by Microgaming to network rules resulted in a run on the bank as players withdrew their deposits, with the effect of the “bank run” being compounded by fines of over €150,000 imposed by Microgaming, which it says were incorrectly withdrawn from player funds.

The directors of 5050 Poker also accuse management and the company’s audit firm of providing “false information on the size of the players’ fund, the costs of operation as well as the size of the company’s assets”.

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