Press "Enter" to skip to content

Germany’s scandal-hit Wirecard says Lost billions Probably gone

Germany’s scandal-hit payments supplier Wirecard said Monday there was a possibility the lost 1.9 billion euros from its balances only didn’t exist.

The organization’s CEO Markus Braun resigned on Friday after auditors from Ernst & Young explained a day before the billions had been missing out of Wirecard’s accounts.

The hunt for the lost billions hit a dead end on Sunday following two Philippine banks which were believed to hold the money in escrow accounts stated they had no transactions with Wirecard.

“The Management Board of Wirecard assesses based on additional examination that there’s a prevailing likelihood that the lender trust account balances from the amount of 1.9 billion EUR don’t exist,” an announcement from Wirecast stated on Monday.

Wirecard was regarded as a darling of their developing financial technology industry and had expanded its existence into Asia and North America.

However, the firm became the topic of multiple Financial Times reports regarding accounting irregularities in its Asian operations. Wirecard disputes that the accounts, which date back to February 2019.

On Monday, stocks dived up to 44.9% in day Frankfurt trading after news broke of this fiscal black hole.

Moody’s Investors Service on Monday withdrew Wirecard’s evaluations, stating that”it considers it has inadequate or inadequate information to encourage the upkeep of their evaluations.”

To keep the company afloat, Wirecard stated it was ongoing”constructive talks” with banks maintaining credit lines, and so is”analyzing alternatives for a sustainable funding plan for the corporation.”

The company said that it was also analyzing measures to restructure and get rid of company units.