Wirecard has been kicked out of Germany's benchmark stock index, the latest embarrassment in its $2 billion scandal

Markus Braun, Wirecard's former CEO.Peter Kneffel/picture alliance via Getty Images
  • Scandal-ridden German fintech Wirecard is being kicked out of Germany's flagship stock market index from August 24.
  • "Wirecard AG is deleted from the DAX index," Deutsche Boerse said in a statement Wednesday.
  • The company is at the heart of a $2 billion accounting scandal which saw its former CEO Markus Braun get arrested on suspicion of market manipulation and fraud.
  • The German fintech's share price is down 97% this year.
  • Visit Business Insider's homepage for more stories.

Scandal-ridden German fintech Wirecard, which is suspected of a $2 billion accounting fraud, is being kicked out of Germany's flagship stock market index from August 24.

German market operator Deutsche Boerse, said in a statement Wednesday: "According to the new Insolvency Rule (section 5.1.1) Wirecard AG is deleted from the DAX index, effective 24 Aug."

Read more: A $5 billion chief market strategist shares 5 post-pandemic stocks to buy now for gains as COVID-19 cases level off — and 2 big-tech winners to start cashing out ofAdvertisement

The German fintech has been replaced by Delivery Hero SE, a food delivery service.

Deutsche Boerse announced last week it would be delisting Wirecard and other insolvent companies will be dropped from German blue chip DAX Index, with 2 days' notice starting from August 19.

This is the latest escalation in a saga which saw the German payments processor file for insolvency in late June. The fintech's CEO Markus Braun was arrested on suspicion of market manipulation.
Advertisement

Read more: A JPMorgan equity chief sees stocks staying rangebound for another year, even if there's a vaccine breakthrough — but says investors can still get big returns in these 11 regions and sectors

The firm had said its missing cash was being held in two banks in the Philippines, but the central bank of the Philippines subsequently denied the claim. Three former top managers have been arrested on suspicion of fraud. Earlier this month German prosecutors appealed on television for information on the whereabouts of Jan Marsalek, the former Wirecard COO, who has gone missing and is now on Interpol's most wanted list. Advertisement

Wirecard is still continuing its business activities despite filing for insolvency.

Wirecard's share price is down 98% year-to-date at 1.37 euros ($1.64). Before the hole in its accounts came to light in June, Wirecard shares were changing hands for nearer to 130 euros ($154).

{{}}