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How Wirecard Went From Tech Star to Bankrupt
Article

How Wirecard Went From Tech Star to Bankrupt

Prosecutors are probing whether the electronic-payments giant used fictitious revenue to inflate its sales and fool investors; a missing $2 billion


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Editorial Rating

9

Qualities

  • Eye Opening
  • Hot Topic
  • Engaging

Recommendation

Enron, Tyco and WorldCom: Now add to this list of massive corporate accounting frauds the name Wirecard, a global transaction and payment processor that on June 17, 2020, carried a market valuation of $14 billion but was declared insolvent a week later. The swift implosion arose from deceptive accounting practices and a $2 billion cash shortfall. In this compelling and detailed narrative, Wall Street Journal reporter Paul J. Davies explores Wirecard’s shadowy world.

Take-Aways

  • Wirecard is another corporate story of accounting fraud and deceptive financial practices.
  • Auditors could not verify $2 billion in liquid assets, and within eight days, the company declared bankruptcy.
  • Wirecard engineered fake revenue and profit numbers.

About the Author

Paul J. Davies is a senior markets reporter for The Wall Street Journal in London.