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0.00%Reading
Wirecard has filed for insolvency today due to the €1.9 billion ($2.1 billion) hole in its finances. It filed the application in Munich.
Wirecard is a German digital payments company, which operates several crypto debit cards. They include Crypto.com and TenX, which have stated that they are materially unaffected by Wirecard's lost funds.
On June 18, Wirecard announced that its auditor Ernst & Young had discovered a €1.9 billion ($2.1 billion) hole in its balance sheet—around 80% of its net cash, according to Bloomberg. The following day its CEO stepped down; after an arrest warrant was put out for him, he handed himself in to the police.
The axe came swiftly for Dr. Markus Braun, the CEO of German fintech company Wirecard, which yesterday announced that auditor Ernst & Young had discovered a $2 billion hole on its balance sheet. Today, Wirecard announced that Braun has resigned with immediate effect “in mutual consent” with the board. Dr. James H. Freis, Jr, who joined Wirecard’s board yesterday ahead of a previously-announced July 1 appointment, will fill the void as interim CEO. Additionally, Wirecard has suspended board membe...
Former CEO Dr. Markus Braun is accused of lying to auditors about the missing money. Wirecard said that the money probably does “not exist”, and that it had misled investors about how it made its profits. It has since withdrawn its annual accounts and its stock prices have plummeted.
Tips
Have a news tip or inside information on a crypto, blockchain, or Web3 project? Email us at: tips@decrypt.co.
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