The shareholders of Deutsche Fintech Wirecard take legal action against EY, one of the “Big Four” (an English term used for the world’s largest consulting and audit firms) in relation to Consequences of the scandal that now surrounds the company.
Earlier this month, The auditor refused to sign the 2019 fintech financial report after discovering the disappearance of 1,900 million euros (about $ 2,100 million) in their accounts.
After the discovery of EY The German authorities arrested the CEO of Wirecard (now ex-CEO) Markus Braun, who had been responsible for the company for almost two decades.
Braun was accused of conspiring to inflate the company’s fortune and falsified more than 32% of Wirecard’s assets, $ 2.1 billion of the $ 6.5 billion claimed.
On June 26, according to CNBC, EY said there were “clear signs” it was an elaborate and sophisticated scam, in which several stakeholders from around the world participated in different institutions with a clear and conscious goal of Amounted to“”
The auditor defended his position and stated that “even the most robust and comprehensive audit procedures” could not “derail” collusive fraud of this kind.
The German Association of Shareholders, Schutzgemeinschaft der Kapitalanleger e. V. (SdK)However, he filed a lawsuit against three EY auditors (two current and one former) for their alleged role in the accounting scandal.
Cryptocurrency debit cards affected by the Wirecard controversy
25th June Wirecard applied to open economic insolvency proceedings. When the extent of the suspected fraud became apparent, regulators decided to suspend its subsidiary Wirecard Card Solutions Ltd., which is responsible for issuing the company’s debit cards.
The incident has raised concerns in the crypto industry. because Wirex, TenX and CryptoPay debit cards are among the cards issued by Wirecard.
After the action of the regulatorsCrypto.com has been asked to stop operating its UK and European Union cards, however, returned all funds from affected debit cards to customers’ crypto wallets.
It is reported that the company is currently working on moving its card program to a new provider.