The fall of Wirecard shares exceeded 97% amid the announcement of the company’s insolvency
The settlement service and issuer of cryptocurrency cards Wirecard this Thursday filed an insolvency petition in a Munich court. The company explains its decision by the emergence of “excessive debt”.
Last week, EY’s auditor announced that it was unable to locate Wirecard’s € 1.9bn of assets reflected in its balance sheets. The company initially assumed that the “fake” information might have been provided by a third party to mislead the auditor, subsequently acknowledging the shortfall. Wirecard CEO Marcus Brown, who led the company for almost 20 years, quit his job, was arrested and released on bail.
In the near future, the company will make a decision on filing related applications for its two divisions Wirecard Card Solutions and Wirecard Singapore, which were responsible for issuing cards for such projects in the field of digital assets as Crypto.com and TenX..
Crypto.com CEO Chris Marsalek argues that Wirecard’s problems will not affect his company or its customers. Fiat assets, he said, “remain safe and secured by Crypto.com.” In case of termination of Wirecard service, customers will receive “one hundred percent fast deposit of funds to their cryptocurrency wallets”.
“At the moment, it is unclear which divisions will be affected and whether any services will be terminated at all. We will keep you informed as the situation develops, but I want to assure all Singapore and European cardholders that their assets remain safe, ”he explained..
The Frankfurt Stock Exchange has suspended trading in Wirecard shares ahead of today’s announcement. Since the first reports of company problems appeared, the price has dropped 97% from 104.50 euros to less than 3 euros. The fall since the resumption of trading today amounted to more than 75%. Wirecard becomes the first member of the prestigious DAX stock index to declare insolvency.
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