The German FinTech giant Wirecard remains embroiled in controversy. After several investigations and reports from the Financial Times (FT) and financial analysts regarding alleged accounting irregularities and possible money laundering within the Wirecard ecosystem, Munich prosecutors launched criminal inquiries—this time directed not at Wirecard itself, but at FT journalists and market speculators.
According to SPIEGEL Online, Germany’s Federal Financial Supervisory Authority (BaFin) has filed a formal complaint, suggesting that certain individuals, including journalists, may have engaged in market manipulation tied to the short-selling of Wirecard stock. BaFin claims there was a deliberate attempt to drive down the company’s share price.
Accusations Against Financial Times and Short-Sellers
BaFin’s legal complaint, submitted to the Munich Public Prosecutor’s Office, names approximately twelve individuals, including two Financial Times journalists and a group of short-sellers. The watchdog suspects these parties of orchestrating a “short attack” against Wirecard—allegedly profiting by creating panic through damaging news coverage.
Earlier, BaFin had imposed an unprecedented short-selling ban on Wirecard shares—a move rarely seen within the European financial markets. This action followed suspicions that journalists may have coordinated with investors to manipulate stock prices, prompting widespread criticism and concern over press freedom.
How Short Selling Works
The alleged scheme revolves around short selling, a financial tactic in which investors borrow shares, sell them at market value, and later repurchase them at a lower price to return them—profiting from the difference.
BaFin believes that speculators built up their short positions prior to FT’s publication of damaging reports. If proven, this would suggest a coordinated effort to exploit the media for financial gain.
Financial Times Issues Strong Rebuttal: “Groundless and Misleading”
The Financial Times has strongly refuted the accusations, defending the integrity of its journalism and rejecting any claims of unethical behavior or market interference:
“Any assertion that the FT or any of its journalists engaged in market manipulation or unethical conduct in relation to Wirecard is entirely groundless and misleading. These claims serve only to distract from the serious revelations uncovered through our reporting.” (source)
The controversy originated with a January 30, 2019 article, where the FT alleged that Wirecard staff based in Asia had fabricated revenues, falsified documentation, and manipulated financial records. The fallout was immediate—Wirecard’s valuation dropped by more than €8 billion on the stock market.
Over the subsequent weeks, the FT published additional reports, elaborating on and refining its initial findings. As of now, SPIEGEL Online reports that it remains uncertain whether formal charges will be filed as a result of the investigation.
Ongoing Scrutiny: Wirecard and Binary Options Fraud
Separate from the market manipulation claims, the Scam-Or Project has conducted its own investigations into Wirecard’s role in the global binary options fraud network. These findings indicate that Wirecard UK & Ireland executives may have cooperated with individuals behind GreyMountain Management, including David Cartu and Jonathan Cartu.
Scam-Or Project also uncovered documentation linking Wirecard to payment processing for other illicit binary options operations beyond GreyMountain.
Relevant Reports:
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Wirecard Involvement In Illegal Binary Options Schemes (Part I)
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Wirecard, GreyMountain, And The Binary Options Fraud Machine (Part II)
A third report is expected to follow soon.
According to the FBI, binary options scams defrauded retail investors of up to $10 billion annually until bans took effect around 2017–2018. GreyMountain Management was a key player in this criminal industry, managing numerous fraudulent platforms.
Should further proof of Wirecard’s involvement in such fraudulent systems emerge, the company’s already tarnished reputation and financial standing could face even more severe consequences.
Disclaimer
Neither Scam-Or Project nor any affiliated individuals hold Wirecard shares or have participated in short-selling activities related to the company.