Failure pattern · Germany · 2015–2020
Wirecard: the German fintech with €1.9 billion that didn't exist
Wirecard joined Germany's top stock index, while journalists reported fraud for years. In 2020 it admitted €1.9 billion supposedly held in Asian bank accounts probably didn't exist, and collapsed.
By Shivam Bhandari · Reviewed 31 October 2026 · How we write
by the numbers
- Peak market value
- about €24 billion
- Missing cash
- €1.9 billion
- DAX entry
- 2018
- Insolvency
- 25 June 2020
What happened
Wirecard processed card payments and grew into a German tech champion, entering the DAX index in 2018 and reaching a market value of about €24 billion. Much of its reported profit came from partner businesses in Asia.
From 2015 the Financial Times, led by reporter Dan McCrum, published evidence of accounting irregularities. Instead of investigating Wirecard, German regulator BaFin temporarily banned short-selling of its shares and filed a criminal complaint against the journalists.
In June 2020 auditor EY refused to sign the accounts because €1.9 billion of cash could not be verified. Philippine banks said the documents were fake. Wirecard filed for insolvency on 25 June 2020. Its CEO was arrested, and its chief operating officer fled.
Timeline
- 2015
FT begins publishing concerns.
- 2018
Joins the DAX.
- 2019
BaFin bans short-selling of Wirecard shares.
- 2020
Missing €1.9 billion; insolvency.
what went wrong
- Profits from opaque third-party partners.
- Regulators protected a national champion instead of investigating.
- Auditors failed to verify cash directly for years.
the lesson
Prestige and national pride are no substitute for verification — confirm cash with the bank, not with documents from the company.
Apply it to your business
- 1Verify the most important numbers directly at source.
- 2Take critics seriously, especially persistent ones.
- 3Be wary of profits you can't trace.
Laws at work in this story
Figures are rounded and drawn from public reports, company filings and widely cited coverage at the time. Check the company's latest filings before relying on any number.