Debit card issuer Wirecard has filed for bankruptcy after auditor Ernst & Young (EY) failed to confirm the company has €1.9B in its accounts, Reuters reports.
The company's management team has filed for bankruptcy at a Munich court "due to impending insolvency and over-indebtedness." Wirecard's collapse could become the first bankruptcy of a German company listed in the stock index DAX.
The Central Bank of the Philippines has failed to confirm the missing €1.9B (around 32% of the assets the company manages) were stored in accounts at financial institutions in the country.
Kris Marszalek, CEO of Crypto.com, a company Wirecard had teamed up with, has said client funds are safe in segregated accounts with another bank, as required by the UK's Financial Conduct Authority (FCA).
Wirecard's market cap has dropped by more than 90% after the auditor refused to sign the 2019 report. After that, the company's CEO, Markus Braun, resigned and was arrested on June 23.
Munich prosecutors believe Braun inflated the company's figures to make it more attractive to potential investors.
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