Wirecard case: FinTech scandal

Earlier this month, the auditing firm Ernst & Young (EY) refused to sign the 2019 financial report of the German company WireCard after discovering the disappearance of $ 2,100 billion from its accounting books.

EY received Wirecard documents in March of this year in which this company reported that it had the money now missing in Philippine banks. However, three months later, the BPI and BDO banks in the Philippines pointed out to EY that such documents were false. For this reason, for the auditor, Wirecard committed an elaborate fraud, in which multiple actors participated around the world through different institutions with only one purpose: the scam.

The FinTech company had allegedly conspired to fraudulently inflate its sales and profits to deceive the audit firm for a decade. Faced with this, the German authorities are going to review the way in which accounting firms are regulated, as they are looking for radical solutions to contain the consequences of the enormous fraud in the Wirecard payments group.

According to CoinTelegraph, Wirecard shareholders are taking legal action against EY, due to the consequences of the scandal in which the audit company has been involved in recent months.

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Elijah Casanova
Last year law student at the Universidad del Pacífico. With an interest in blockchain technology, business and administrative law.

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