EUR 2 billion disappeared from a major payment provider

An audit of one of the largest German payment operators Wirecard revealed a shortage of almost EUR2 billion in the company's account.

Deficiency detected by EY auditors. After the corresponding publication, the shares of the fintech giant fell by almost 60%, and the company's director Marcus Brown, who headed Wirecard since 2005, was forced to resign. At the same time, it was this top manager who made the Berlin startup one of the leading European payment systems.

In addition, EY stated that the Wirecard account manager was trying to “trick the auditor” and could provide “fake cash balances.”

The problems at the German fintech began last year. Auditors then noted that Wirecard employees overestimated sales and profits in Dubai and Dublin, misleading the audit. After that, Wirecard hired another audit firm, KPMG. Its specialists were not able to track a significant number of transactions behind Wirecard's profit from 2016 to 2018. Due to difficulties with the audit, the company has postponed the publication of the financial statements for 2019 three times since March, now EY has stated that its publication is not yet possible, as additional checks are necessary.

Wirecard CEO Markus Brown, who has repeatedly denied allegations against the company, said: "It cannot be ruled out that Wirecard was the victim of a serious case of fraud."

It was also announced the temporary suspension of the work of the company's operating director Jan Marsalek. Yesterday, the company's shares fell by almost 50%. Two years ago, when Wirecard entered the German Dax 30 index, its capitalization was EUR24 billion, today the company's capitalization has fallen to EUR2.4 billion.

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