German payment processor and financial services provider Wirecard on Thursday announced it is filing for insolvency at a district court in Munich amid an accounting scandal. The company is also considering whether insolvency applications have to be filed for its subsidiaries.
The news comes after earlier this week, Markus Braun, the now-former chief executive of Wirecard, turned himself in to the German authorities and was later released on bail.
The German company, which processes payments for businesses, including Visa and Mastercard, was considered one of the most promising European fintech firms. However, Wirecard faced major troubles last year after reports emerged that it had used forged and backdated contracts for several suspicious transactions.
As a result of the recent developments, the company's share price plunged more than 85 percent, which constituted a loss of almost $12.5 billion in market value.