Fintech biz Wirecard folds into insolvency like two pair against a flush. Good luck accessing your chip stack

published 26.06.2020 21:29

by Thomas Claburn from go.theregister.com

That action follows from the UK Financial Conduct Authority's asset freeze order, issued on Friday to protect UK customers from the insolvency of Wirecard AG.

One such subsidiary, the UK's Wirecard Card Solutions, posted a note on its website that it "has temporarily suspended its electronic money issuing, card issuing and acquiring business with immediate effect and until further notice."

"The management board of Wirecard AG has decided today to file an application for the opening of insolvency proceedings for Wirecard AG with the competent district court of Munich (Amtsgericht München) due to impending insolvency and over-indebtedness," the company said in a statement, adding that it is evaluating whether similar action will have to be taken by its subsidiaries.

German electronic payment whizzkids Wirecard AG has filed for bankruptcy, three days after the arrest of ex-CEO Markus Braun on fraud charges – and the company's admission that €1.9bn in assets ($2.1bn) were missing and may never have existed.

The order has frozen electronic cash in apps that rely on Wirecard as a payment processor, like Anna Money, Curve, Pockit, and Soldo, among others, to the dismay of customers.