The president of the multinational financial services Wirecard, Markus Braun, exposes his resignation in the midst of the company's scandal, which presented a lack of more than 1.900 billion euros in the balance of its accounts.
Recently the Bit2Me News team announced the news that the multinational technology and financial services Wirecard presented a mismatch of more than 1.900 billion euros prior to the presentation of its annual balance sheet. This fact was discovered through an audit process carried out by the firm Ernst & Young (EY) to Wirecard.
Now, in the midst of this scandal, Dr. Markus Braun, who has been founder and president of Wirecard for more than 18 years, recently presented his resignation, stating that with his decision he assumes that responsibility for the entire situation facing the company falls about him.
“The trust of the capital market in the company I have managed for 18 years has been deeply shaken… With my decision, I respect the fact that responsibility for all business transactions lies with the CEO.”
Now James Freis will take over the reins of the company, so he will serve as interim CEO of Wirecard to take Braun's place. Freis will have the responsibility of representing the technological multinational in all the processes that are to come.
It may interest you: Wirecard is under audit and 1.900 billion euros are not available in its accounts
Markus Braun's resignation drives Wirecard's fall on the stock market
Although the EY auditor's report states that the account balances were manipulated and altered to deceive the company, the multinational Wirecard declared that the missing funds are in the hands of 2 powerful banks located in Asia. However, after several days of investigation, both the Bank of the Philippines such as BDO Unibank They denied any type of commercial relationship with Wirecard, which is why Braun submitted his resignation.
After this news was made known, Wirecard's shares on the Frankfurt Stock Exchange were affected again, with a drop of almost 80% of their value. Although at the time of this publication, the fall in shares has stabilized and a certain value has been recovered, the shares still remain well below the value they had before the scandal became known, when they were around 100 euros per action.
Source: Wirecard
In this sense, Wirecard was considered one of the most powerful and successful companies in the Fintech industry in Germany, with a market capitalization of more than 24.000 billion euros. Now the value of this multinational has been reduced abysmally, losing more than 20.000 million euros in capitalization.
Crypto companies allied with Wirecard
Currently, with this new drop we are not clear what the repercussions will be on the crypto ecosystem, considering that Wirecard is in charge of issuing the majority of cryptocurrency-backed debit cards to companies such as Crypto.com, TenX, Wirex y Cryptopay. However, it is expected that the situation will not directly affect the users and investors of these cryptographic companies that use their cards.
In reference to this, the CEO of Crypto.com, Kris Marszalek, mentioned on his Twitter account that his clients' cards are pre-funded. He further highlighted the fact that the funds are held in a UK FCA regulated banking entity other than Wirecard.
Continue reading: Coinbase begins to lose ground, platform clients withdraw their BTC from the platform
