Wirecard shares collapse

Uhoh

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That doesn’t look good.

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It looks like the trustees intentially defrauded the auditors over a number of years. Scary that it took a journalist to discover this rather than the auditors though.

Monzo must be glad they removed their dependency on Wirecard a while back, although don’t a few other fintechs still depend on their services?

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I swear there’s something dodgy going on with these every other week.

The auditing business has a lot of corruption.

They’ve probably raised money showing their run rates and projections and then they lose massive contracts like Monzo and Revolut who went in house, and there’s all the people with a lot to lose pulling stunts.

From their Wikipedia page

In 2019, KPMG was hired by the German payments company for an independent audit to address the mentioned allegations. Wirecard claimed that KPMG concluded that no discrepancy was determined during the audit.[61] However, on April 28, 2020, Wirecard shares tumbled 26% when its auditor announced that it did not receive sufficient documentation to address all allegations of accounting irregularities.

Seems like this share crash has been a long time coming

Fraud

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May have been mentioned previously - but don’t Starling and Revolut integrate to the payments network through wirecard?

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They certainly ‘did’ in the same way and at the same time that Monzo did. I haven’t heard of that changing yet for either of those two but that doesn’t mean that it hasn’t.

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I thought that was GPS, not Wirecard?

I believe Dozens might use them though

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Ah. You’re right. Wirecard were the Monzo prepaid card issuer. It was GPS that was the shared ‘whatever they do’ with the others.

How quickly memory fades.

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Only really Anna and Tymit that I have heard of

There are loads more UK based firms that use Wirecard as an issuer. I’ve been scouring the market for prepaid cards for years now and they’ve missed dozens (no pun intended).

German payments company Wirecard files for insolvency after revealing $2 billion accounting black hole

:grimacing:

https://twitter.com/respros/status/1276470191673806849

May be the end on Anna? :man_shrugging:

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I’m heartbroken for ANNA. Less so for Curve.

Must be really distressing for people and small businesses with money in ANNA. The money remains safe, but inaccessible.

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Why would anyone in their right mind pick Anna or a smilier e-money institution when they can instead go with a bank such as Monzo or Starling and be isolated from any of this (plus FSCS protection as a last resort)?

@j06 can you explain more about “the money remains safe”? Given they’re asking to withdraw funds by card or FPS, it seems like not only are the cards affected but the money itself is being kept by Wirecard, otherwise there would be no urge to withdraw by FPS.

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Curve just suspended all their cards… right after being picked to power samsung pay. Bad timing for samsung.

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