Wirecard AG, a major German fintech company, is allegedly unable to account for over €1.9bn ($2.1 billion) in its 2019 financial statement.
The international payment processor company issues exclusive crypto debit cards to its crypto customers. On Thursday, June 18, the Financial Times reported that about $2.1 billion could not be accounted for by Wirecard’s auditors, Ernst & Young (EY).
In its official public statement, Wirecard disclosed that a trustee had tried “to deceive the auditor and create a wrong perception of the existence of such cash balances or the holding of the accounts for to the benefit of Wirecard group companies.”
Although Wirecard’s management is “working intensively together with the auditor towards a clarification of the situation,” the damage has already been done. Wirecard’s stock price (trading as WRCDF) dropped by over 60% within 5 hours, as soon as the allegation came to light.
The Financial Times report further revealed that the conspiracy did not take place at Wirecard HQ in Aschheim, Germany. Rather, it was carried out cross-continent by its staff in Dublin and Dubai. Wirecard currently has 24 office branches in 20 countries.
Possible crypto exchange companies that could be affected by the controversy include Crypto.com, CryptoPay, TenX, and Wirex, all of which are partnered with Wirecard.
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