German fintech company Wirecard possibly robbed before its collapse
German fintech company Wirecard was allegedly looted before its collapse in June, according to speculations from German prosecutors.
Even though the payments group denied claims of deception at
the time, around $1 billion was moved to unclear partners, the Financial Times
said in its news report on Friday.
The basis of the investigation are the loans granted to
associate partners in Dubai, Singapore and the Philippines, which contradict
the statements of former chief executive Markus Braun and other top
ex-employees.
“According to people familiar with the probe and a document
seen by the Financial Times, the embezzlement is suspected to have taken the
form of unsecured loans, which Wirecard claimed were for advance payments to
merchants processing card transactions through its partners in Asia,” the Times
report reads.
Braun has rejected any act of alleged wrongdoing. Those
arrested in the case last month, apart from Braun, were three former
executives.
In June, Wirecard filed for insolvency after $2 billion went
missing as The Block reported. At the time, the company was examining whether
insolvency proceedings needed to be filed for its two subsidiaries: Wirecard
Card Solutions and Wirecard Singapore. Both subsidiaries issue crypto Visa
debit cards for corporations such as Crypto.com and TenX. The two companies
told The Block at the time that their performance remained unaffected by the
case.
The troubled German payments processor subsided in June
under €3.5 billion of debt, which came to be known as one of Germany’s
large-scale postwar accounting frauds.
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