Wirecard

BaFin has suspended and filed a criminal complaint against one of its employees who is suspected of having used insider information when trading Wirecard shares just before the payments company disclosed that €1.9bn in corporate cash was missing from its accounts.

The suspect, an unnamed employee of the securities supervision department, sold structured products based on Wirecard on June 17 last year, BaFin said.

Wirecard's insolvency administrator Michael Jaffé has stated in a press release that they have "been able to successfully conclude the investor process for Wirecard's core business despite the most unfavorable conditions" by selling Wirecard's core business to the major Spanish bank Santander, They have acquired the European core business of the payment service provider Wirecard specifically the technology platform in Europe and all the assets necessary for it.

According to a progress report of the insolvency administrator Michael Jaffé the situation is too desolate for resturcturing, after years of reporting profits, but in reality accumulating losses.

Following the report a mountain of debt of more than 3.2 billion euros is offset by usable assets of only 428 million, which means that the company is over-indebted by around 2.8 billion euros. In liquid assets there are only 26.8 million euros left. These figures are the result of a long series of losses.

KfW, Germany’s state development bank, could lose €100 million euros after Wirecard filed for insolvency last Thursday.

Ipex Bank, a KfW subsidiary, granted Wirecard the sum over a credit line two years ago and the funds were fully drawn down but were not hedged by Ipex.

The German shareholders’ association SdK announced Friday that it had filed a criminal complaint against accounting firm at EY over its role in the Wirecard scandal.

According to news magazine Der Spiegel, SoftBank is also planning to sue EY after investing 900 million euros in Wirecard last year.

EY, told CNBC late Thursday that "even the most robust and extended audit procedures" couldn’t uncover what it called a “collusive fraud.”

The payment provider Wirecard has declared bankruptcy at the district court in Munich. The company announced that "The Management Board of Wirecard AG has decided to file an application for the opening of insolvency proceedings on behalf of Wirecard AG at the competent Munich Local Court due to the threat of insolvency and over-indebtedness". Previously irregularities in the balance sheet of the company had come to attention and the company now assumes that €1,9 billion at two Filipino banks do not exist.

The former CEO of Wirecard AG, Markus Braun, was arrested on Monday evening. Braun had been detained on suspicion of inflating Wirecard's revenues and balance sheet to make it appear more solid and attractive for investors and customers.

Wirecard acknowledged on Monday that €1.9 billion in missing cash, around a quarter of the company's assets, probably never existed in the first place.