Wirecard CEO quits as search for missing $2.1bn hits dead-end in Asia

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Wirecard CEO quits as search for missing $2.1bn hits dead-end in Asia

Chief Executives of the embattled German payment processor firm Wirecard had resigned on Friday as the German payments firm’s search for missing $2.1 billion from its balance sheet had hit a dead-end in Philippines, pointing towards further pain ahead for the firm as it had been scrambling to secure billions of euros in debts from its creditors.

Besides, the departure of Wirecard Chief Executive, Markus Braun, the mastermind fintech theologist who had turned the German payments firms into one of the cutting-edge financial technology services providers in Europe, came forth a day after the firm’s London’s based auditors had declined to sign off its 2019 balance sheet over the missing amount, eventually leading to a looming cash crunch alongside likely allegations of fraud.

Braun accepts liabilities of all Wirecard business transactions before resignation

In point of fact, Braun’s resignation was brought into light hours after release of a video that blamed Wirecard on fraudulent activities, while Braun was quoted saying following his resignation that he accepted “responsibility for all business transactions lies with the CEO”.

Nonetheless, the Europe’s second-largest payment processor, Wirecard, has been facing off an unfathomable scale of pressure since a whistleblower was quoted saying that the success of the firm was largely prodded by a cascade of fake transactions, a slanderous scandal which would likely to ruin Germany’s reputation as the leading fintech overseer in the bloc.

On top of that, after shrugging off more than €8 billion or 60% of its market cap in a single session yesterday following a statement that the Wirecard creditors would terminate billions of euros in debt deals reached earlier if the firm couldn’t come up with a decipherable explanation of the missing amount, Frankfurt’s DAX listed shares’ prices of Wirecard had rounded off Friday’s market down by 35.29 per cent to €25.82 a share, registering a weekly percentage loss of 71.29 per cent to wind down the week at seven-year lows.

Meanwhile, referring to a tremendous scale of damage in credibility and trust of Frankfurt’s DAX followed by the reveal of a total of €2 billion missing from the Wirecard balance sheet, a German economist specialising in accountancy fraud, Carola Rinker said, “Wirecard is a company that has caused serious damage to the credibility and trust of the Dax with international investors. This will have significant consequences for the image of the German capital market. ”