Crypto card Wirecard loses $ 2.1 trillion in cash, company shares plummet by 62%
About 1.9 billion euros ($ 2.13 billion) in cash is missing from one of Wirecard’s trust accounts and the crypto debit card provider still can’t account for the money, the company reported Thursday.
In a statement, the German main payment processor blamed “spurious” cash balances provided by a third party with the aim of misleading the auditor, Ernst and Young, who discovered the scandal during a routine audit.
“There are indications that spurious balance confirmations have been provided on the administrator’s side, to mislead the auditor and create a misperception of the existence of such cash balances or the holding of accounts for the benefit of Wirecard group companies,” The firm said.
Wirecard, which issues cards that support crypto payments to platforms like Crypto.com and Wirex, said it is investigating the matter in close cooperation with the auditor. The missing amount is equal to 25% of the funds in the company’s balance sheet.
As a result of the problem, Wirecard has now delayed the release of its 2019 annual report and financial statements, initially slated for August 4. “If the certified annual and consolidated financial statements cannot be made available until June 19, 2020, loans made to Wirecard an AG amounting to approximately € 2 billion may be terminated,” its administrators reported.
Wirecard shares fell as much as 62% from 65 euros to 40 euros in the Frankfurt trade on Thursday after news broke of the missing billions. In the last 52 weeks, the share price has reached a maximum of 159 euros and a minimum of 30 euros.
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