$2 billion held in trustee-controlled accounts have disappeared, according to the Wall Street Journal. The accounts held the company’s revenue and is over 25% of Wirecard’s revenue from 2016 through 2019. Wirecard is a German fintech company.
Share values have dropped, and the company has become insolvent. Wirecard filed for bankruptcy on Thursday. Markus Braun, Wirecard’s CEO, was arrested on Tuesday and is being charged with reporting fake income in order to boost sales figures.
Shareholders at Wirecard are upset because complaints have been previously sent to Ernst and Young detailing the suspect accounting practices. However, Ernst and Young is defending themselves against accusations of negligence.
“There are clear indications that this was an elaborate and sophisticated fraud, involving multiple parties around the world in different institutions, with a deliberate aim of deception,” according to a statement released by Ernst & Young.
However, Ernst & Young have been found to sign off on the financials of other companies with fraudulent practices, such as Luckin Coffee and Dankse Bank.