R.I.P Wirecard – Cybercrime will miss you! And maybe BaFin too!
For all people familiar with the Wirecard case, the filing for insolvency by Wirecard announced today is no surprise. No surprise at all. Rather expected as the logical result of the endgame that started with Markus Braun‘s departure.
It was probably the first DAX-listed company to turn belly up under the blind eyes and the protection of the German regulator BaFin and the German public prosecutor’s office, causing lasting damage to the German financial market. Shame on you BaFin and you the involved German prosecutors. The failure of Wirecard is your failure too.
After the departure and temporary detention of its former CEO and main shareholder Markus Braun in combination with the departure of his long-time partner and fellow board member Jan Marsalek, the company was done. The core of the company’s business was essentially a secret. It was a secret because it consisted of acting as a payment processor for high-risk businesses, scams, and cybercrime. That’s where the high transaction volumes of the last years and the profits come from. To be more precise – the allegedly high transaction volumes and the alleged profits.
Apparently, Wirecard‘s business model was based on doing business with third-party acquirers (TPAs) and these TPAs acquired the customers and volumes. In the past, companies such as GreyMountain Management Ltd (GMM), established by the Israeli David Cartu and his brothers, have been involved. These acquired for Wirecard Scammer in the field of binary options. In general, Wirecard had a strong connection with the Israeli scammer scene. Some of the large Israeli scammers were then also shareholders of Wirecard. More of this and other topics will be available shortly on the website set up especially for this purpose.
Wirecard will remain exciting and still cause many surprises. Promised!