Wirecard’s CEO and founder has resigned after a whopping sum of $2.1 billion dollars has gone unaccounted for, OYOGist.com reports.
Efforts to trace the whereabouts of the funds have proved abortive, and the industry is in panic after massive fraud is exposed.
OYOGist.com recalls that Wirecard is one of the largest payment processors to Automated Clearing Houses (ACHs) around the globe. ACH companies service merchant payment companies that freelancers and the gig economy largely rely on such as Payoneer and others.
Wirecard AG is a German payment processor that, among other financial related services, handles the processing and shipping of credit cards and payments for ACH providers.
Visa and Mastercard are both licencors to Wirecard.
On Thursday, Wirecard revealed that it may have misrepresented significant inaccuracies that have benefited the company in its, spiring into a complicated web of fraud revelations and investigations that have involved the German Police.
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Markus Braun, the company’s founder and long-time CEO, resigned on Friday.
The news of the missing $2.1 billion has shaken the industry, a giant financial market that is inter-connected and reliant on 3rd party providers like major banks and financial solution providers such as Wirecard.
The fraud that Wirecard has been linked to has put Germany on the negative spotlight, and drawn the attention of investigators as the police wade into the affairs of the company.
Wirecard’s stock has continued on a free fall since Thursday, trading at 80% lower than it did before the news of the fraud broke.
The company’s stock traded at €14.44 -11.38 (which -44.07% lower) on Monday, 22nd of June, 2020.