MUNICH (dpa-AFX) - Shares of Wirecard AG (WCAGY) tanked nearly 70% after the German electronics payment company said its auditor could not find any evidence of 1.9 billion euros in cash.
WCAGY is currently trading at $18.74, down $39.76 or 67.97%, on the OTC market.
Wirecard AG's auditor Ernst & Young informed the company that no sufficient audit evidence could be obtained so far of cash balances on trust accounts in the consolidated financial statements in the amount of 1.9 billion euros, about a quarter of the consolidated balance sheet total.
'There are indications that spurious balance confirmations had been provided from the side of the trustee,' the company said.
Wirecard revealed that two Asian banks are managing its escrow accounts.
'Previously issued confirmations by the banks were no longer recognized by the auditor. All parties involved are endeavoring to clarify the matter as quickly as possible,' said Markus Braun, Wirecard chief executive, in a statement. 'It is currently unclear whether fraudulent transactions to the detriment of Wirecard AG have occurred. Wirecard AG will file a complaint against unknown persons.'
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