Wirecard filed for bankruptcy

25.06.2020

Lena Dzhess

Wirecard Payment Card Issuerdecided to go through bankruptcy proceedings after auditor Ernst & Young (EY) failed to confirm the presence of €1.9 billion ($2.1 billion) in the company's accounts.

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The new management decided to file an application forown insolvency court in Munich "due to impending insolvency and excessive debt." The collapse of Wirecard may be the first bankruptcy of a German company included in the DAX stock index.

The search for missing money has reached an impasse in the pastThe weekend after the Central Bank of the Philippines did not confirm that the lost € 1.9 billion (about 32% of the declared assets managed by the company) were stored in trust accounts in a number of financial institutions of the country.

Previously CEO of Crypto.com Chris Margalek, who along with TenX and CryptoPay collaborated with Wirecard, assured that customer funds are safe in segregated accounts with another bank as required by the UK Financial Supervisory Authority (FCA).

Wirecard's capitalization, which peaked at $28 billion, has fallen by more than 90% since the auditor's refusal to sign the reportThis led to the resignation of the company's CEO Marcus Browne on June 23.

The Munich prosecutor's office believes that the ex-CEO of Wirecard inflated sales through fake transactions to increase the investment attractiveness of the company, and he may have had accomplices.Prosecutors now don't rule out Brown being facing criminal charges.