Wirecard North America Inc., a subsidiary of the German payment group Wirecard AG (WDIG.DE), announced on Monday that it had placed itself up for sale days after the struggling parent company sued for insolvency. The U.S.-based company, which was acquired by Wirecard in 2016, said the investment firm is overseeing the distribution process. The service was formerly referred to as Citi Prepaid Card Services.
It did not provide further information, but claimed that Wirecard North America is a separate legal and commercial unit of Wirecard and is “substantially autonomous” from the German group, adding that it remains “self-sustaining.”
Last week, Wirecard sued nearly $4 billion for insolvency protection after uncovering a €1.9 billion ($2.14 billion) void in its finances, which its auditor EY said was the result of sophisticated global fraud.
The corporation said that it would resume its business activities on Saturday following the insolvency filing and that the administrator was named on Monday.
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