Wirecard files for insolvency

Trade on the company’s shares was suspended

Wirecard insolvency

Wirecard files for insolvency. Source: shutterstock.com

The German payments company Wirecard filed for insolvency on June 25, following revelations of $2 million fraud.

Wirecard has revealed that its new management filed for insolvency at a Munich court “due to impending insolvency and over-indebtedness”.

Therefore, Wirecard became the first among 30 major DAX companies that leaves the business.

According to information, the company’s shares were suspended by the Frankfurt Stock Exchange for an hour shortly before the announcement. Wirecard’s shares dropped 80%, which is the lowest rate since January 2006.

We’ve reported that Markus Braun, the former CEO of the German payment services provider Wirecard, has been arrested days after the company found a $2 billion hole in the books.

German prosecutors arrested him on suspicions of manipulative business practices and presenting false information. After Wirecard acknowledged that roughly a quarter of its assets had gone missing, Braun suddenly resigned over it.

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