German Fintech Wirecard Filed for Bankruptcy

By Marko Vidrih on The Capital

Wirecard, a German fintech company, has filed for bankruptcy proceedings after detecting a shortage of 1.9 billion euros in the company’s accounts.

Wirecard AG is a global provider of Internet technology and financial services, one of the largest electronic payment service systems. Earlier, Wirecard itself was forced to admit a “high probability” shortage of 1.9 billion euros in the accounts of the company, which was revealed as a result of an audit by Ernst & Young.

The head of the company, Marcus Brown, has resigned.

“The Board of Wirecard AG today decided to file an application with an authorized court in Munich to open bankruptcy proceedings for Wirecard AG because of impending insolvency and debt burden,” the company said.

Wirecard CEO Markus Brown, who retired on Tuesday, was detained in Germany on suspicion of market manipulation and falsification of balance.

According to the prosecutor’s office, a court in Munich decided to release Brown on bail in the amount of 5 million euros.

Author: Marko Vidrih

Featured image credit: Unsplash

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