Munich police have arrested the former CEO of Wirecard, a German financial technology company, on charges of misrepresenting the company's balance sheet.

According to Reuters and many other countries, police in Munich, Germany, arrested Marcus Brown, who led the company for more than two decades. According to the prosecution's statement, he is accused of conspiring to overstate assets and gross revenues through fraudulent transactions with “third-party buyers.” According to prosecutors, this was done to make the company more attractive to investors.

It is expected that € 1.9 billion, or $ 2.1 billion of distorted funds, will be entered in the trust account of two unspecified banks in the Philippines. Between June 21 and June 22, the Wirecard Board stated that there were no “highly probable” funds.

This money accounts for more than 32% of Wirecard's declared assets of € 5.8 billion ($ 6.5 billion). Since the problem finally surfaced last week, Brown has resigned.

The judge should discuss whether the detention will continue today.

Company in despair
A budget gap and persistent shock raise questions about whether the company can recover and survive in the long run. As mentioned earlier in the Cointelegraph, Wirecard is the most important source for many companies that use encrypted debit cards, such as Crypto.com and Wirex for the Asia Pacific region.

Crypto.com CEO Chris Marsalick indicated that his debit cards are fully funded in advance and that his reserves are held in another UK bank other than Wirecard.

Meanwhile, Wirecard's share price fell nearly 84% to $ 16, as was known from the news.

The company's long-term destiny is still unknown, but Wirecard cards still function normally.

Source: CoinTelegraph

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