â€˜The Enron of Europeâ€™ â€” What We Know So Far About the Wirecard Scandal
Australian YouTuber Dagogo Altraide posted a new video to his 2.5M subscribers detailing the fall of FinTech company Wirecard.
A new video takes viewers through German financial technology company Wirecardâ€™s journey from being one of the top businesses in the world to one whoâ€™s shares plummeted by more than 98% before filing for insolvency.Â Â
In an Aug. 6 video posted to YouTube by ColdFusion, Australian host Dagogo Altraide retells the story of how the Wirecard scandal began when auditors were unable to locate more than $2 billion that was supposed to be sitting in the FinTech firmâ€™s Philippines-based accounts. The Wirecard board later admitted that the funds likely did not exist.
â€œThis was a tale of liars, accounting manipulation, hacking attacks on journalists, an arrested former CEO and a missing executive,â€� Altraide narrated, referring to the company as â€œthe Enron of Europe.â€�Â
Wirecardâ€™s fall from grace
Many major crypto-powered debit cards were under Wirecardâ€™s management when news of the missing $2.1 billion broke on June 18. Former CEO Markus Braun was arrested in Germany on June 23 for misrepresenting the companyâ€™s balances, and the payment processor ended up filing for insolvency two days later.
The U.K.â€™s Financial Conduct Authority initially suspended the license of a Wirecard subsidiary in the country, but this was lifted after just three days, allowing customers to use their Visa crypto debit cards.
Case still ongoing
Despite Braunâ€™s arrest and the firm in administration, not all loose ends in the Wirecard scandal have been so well tied off.Â
In addition, a Mastercard executive at the FBME bank in Cyprus has recently been implicated in covering up money laundering connected with Wirecard.
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