Wirecard: the rise and fall of a fintech giant in Asia
Notwithstanding the fact that its subsidiaries did not file for bankruptcy and may not have been involved in the misdeeds, Wirecard's remaining business is in serious trouble.
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NEWS broke recently that fintech company Railsbank has agreed to acquire its competitor Wirecard UK's remaining assets, clients, and a number of employees. Moreover, Wirecard sold its operations in Brazil and advanced the process of selling its North American operations.
Once the darling of the fintech industry, Wirecard is now in a predicament.
In a dramatic turn of events, on June 18, 2020, auditing firm EY refused to sign off on its financial statements and Wirecard admitted that roughly 1.9 billion euros (S$3 billion) in two Philippine banks did not exist. Within several days, the CEO was arrested for alleged fraud, the company filed for bankruptcy protection, and Wirecard's share price collapsed from more than 100 euros to less than 2.50 euros.
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