Following the arrest of Markus Braun, former CEO of Wirecard on the alleged missing of $2 billion, the German-based company has filed for insolvency. WDI stock is 75% down today.
The missing €1.9 billion was meant to be held in accounts looked after by a trustee on behalf of Wirecard and payment-processing partners in some countries. Wirecard said the missing money may have never existed. Its stock is now seriously down again.
Yesterday, Wirecard shares plummeted, losing 60% after the news about the accounting scandal broke on Thursday. The losses continued today. Wirecard CEO Markus Braun has resigned.
Ernst and Young indicated that as much as €1.9 billion in cash is missing from the Wirecard’s balance sheet. Wirecard management is working with the auditor to clarify the situation.