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Munich police detained Markus Braun, the former head of payment card issuer Wirecard, who resigned amid a scandal involving lost €1.9 billion. According to Deutsche Welle, he is suspected of falsifying data on cash balances in the company's accounts.

The scandal erupted after auditor Ernst & Young (EY) failed to confirm the existence of €1.9 billion in balances in Wirecard's accounts, equivalent to 32% of the company's reported assets under management.

The Munich prosecutor's office believes that the ex-CEO of Wirecard inflated sales through fake transactions to increase the company's investment attractiveness, and he may have had accomplices.

A day earlier, the company's new management was forced to admit that the €1.9 billion in the accounts probably never existed. Management withdrew preliminary results for the prior year, first quarter 2020 and 2020 earnings guidance.

A frantic search for the missing money stalled over the weekend after the Philippine Central Bank failed to confirm that the amount was held in trust accounts at several financial institutions in the country. On June 19, the company hired investment bank Houlihan Lokey, which will have to find ends to this tangled story.

In October 2019, it was reported that Wirecard employees may have conspired to fraudulently inflate sales and profits of the company's Dubai and Dublin divisions, as well as defraud EY for years.

Four days before today's arrest, Braun left his post as CEO of Wirecard after a total of 18 years with the company. Before leaving, he admitted that the company could have become a victim of large-scale fraud. At the same time as Braun, Jan Marsalek, member of the board of directors and chief operating officer of Wirecard, left the company.

By the end of the day on June 23, the judge will choose a preventive measure against Brown. Since information about the problems appeared, Wirecard shares have fallen by 85%.

CEO ***************************************** Chris Marzalek, who along with TenX and CryptoPay cooperated with Wirecard assured that the company's client funds are safe in segregated accounts in another bank as required by the UK Financial Conduct Authority (FCA)

Recall that the US Securities and Exchange Commission (SEC) achieved an asset freeze against two brothers from Pennsylvania and three organizations associated with them in order to stop fraud amounting to tens of millions of dollars.
 
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