The EY auditor was unable to confirm that the German payment systems provider Wirecard had € 1.9 billion. It is assumed that these funds could be reflected in his financial statements as “fake cash balances”, writes Financial Times.
The issuer of Wirecard crypto payment cards missed € 1.9 billion, its shares plummeted by 66%
The German payments group, which includes Wirecard, reported that it found evidence that the Wirecard bank account manager was trying to “mislead the auditor and create the wrong idea that such balances existed.”.
Against the background of this news, Wirecard shares, total two years back included in the prestigious Dax 30 index after reaching a capitalization of € 24 billion, fell by 66%. As a result, the company’s value dropped to € 4 billion.
The payments team also reports “intensive work with the auditor to clarify the situation.” She noted that if Wirecard’s financial statements for 2019 year will not be published by tomorrow, loans of € 2 billion are subject to cancellation. Since March, Wirecard has postponed the publication of these reports three times, promising investors to provide “unqualified audit opinion”.
Back in October became known, then Wirecard employees could have conspired to fraudulently inflate sales and profits of the company’s Dubai and Dublin divisions, and also defraud EY for a decade.
Wirecard is one of the few companies issuing payment cards for cryptocurrency startups. In particular, its services are used by projects Crypto.com and TenX.
Crypto.com CEO Chris Marsalek commented on the situation: “The cards issued by Wirecard for Crypto.com are fully prepaid. Client funds are held by an electronic money issuer regulated by the Authority financial supervision UK (FCA), in segregated accounts. The funds are held in another bank as required by the FCA. Wirecard does not store cryptocurrencies of Crypto.com clients “.
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