Blockchain News

Criminal Report Filed Against EY For Alleged Role In Wirecard Scandal

A criminal report has been filed against at least four auditors in EY. Wirecard, shareholders in German fintech, are taking legal steps for the fallout in the scandal which is taking a toll on the company. 

Reports suggested that the auditor refused to sign off fintech’s 2019 financial report after discovering a shortfall of €1.9 billion on its books.

The then Wirecard CEO, Markus Braun, has been arrested following the discovery of EY. Braun was leading the charge for two decades. He was accused of conspiring to inflate the company’s assets and misrepresent what amounted to over 32% of Wirecard’s assets.

According to CNBC, EY said that 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.”

However, the auditor, in his response, claimed that “even the most robust and extended audit procedures” would not be able to derail a “collusive fraud” of this nature.

Schutzgemeinschaft der Kapitalanleger e. V. (SdK), has filed a criminal complaint against three EY auditors for their alleged role in the accounting scandal.

Impact instilled by wirecard 

Wirecard had earlier fined open insolvency case.on their half. The fraud had come to the fore as regulators moved to suspend its subsidiary. Wirecard Card Solutions Ltd is responsible for issuing the firm’s debit cards.

Following the incident, concern has sparked as Wirecard has issued debit cards for Wirex, TenX and CryptoPay.

The company, according to reports, is now reportedly working to transfer its card program to a new provider.

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