Wirecard says missing $2.1 billion likely do not exist; withdraws results

June 22, 2020 - 11:18 AM
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The headquarters of Wirecard AG, an independent provider of outsourcing and white label solutions for electronic payment transactions is seen in Aschheim near Munich, Germany April 25, 2019. (Reuters/Michael Dalder/File Photo)

Wirecard AG said on Monday that there was a likelihood that the missing amount of 1.9 billion euros ($2.13 billion; $1 = 0.8941 euros)  from its accounts simply did not exist.

The scandal-hit German payments firm said it was also withdrawing its full-year 2019 and first quarter 2020 financial results.

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“The Management Board of Wirecard assesses on the basis of further examination that there is a prevailing likelihood that the bank trust account balances in the amount of 1.9 billion EUR do not exist,” the company said in a statement.

Additionally, the company said it is examining a range of possible measures to ensure continuation of its business operations, which include cost reductions, restructuring, disposal or termination of business units.

Chief Executive Officer Markus Braun quit on Friday as the company’s search for $2.1 billion of missing cash hit a dead end in the Philippines and scrambled to secure a financial lifeline from its banks.

READ: Wirecard CEO quits as search for missing billions hits dead end in Asia

The central bank of Philippines said on Sunday that none of the $2.1 billion missing from the Wirecard appeared to have entered the Philippine financial system. —Reporting by Bhargav Acharya in Bengaluru; Editing by Anil D’Silva