The firm is planning to let go of 730 of the 1,300 workers at its Aschheim office, cutting its total number of employees down to 570.
Top ranking executives at the Munich-based company allegedly funneled millions of euros to suspicious companies in Asia, according to reports.
The executive was allegedly involved in a sophisticated money laundering operation with links to disgraced payments firm Wirecard.
Jan Marsalek is reportedly in Russia after fleeing Germany where he is facing an arrest warrant, according to local media outlets.
This week, the CoinGeek Pulse delves into developments at Wirecard, WhatsApp in Brazil, MetaStreme’s record stress test, and Centbee.
UK customers with Crypto.com, TenX or Cryptopay digital currency debit cards, which are issued by Wirecard, can use their digital currency debit cards at retailers once again.
Crypto.com, TenX, and CryptoPay users living in UK can no longer top up or make transactions with their Wirecard debit cards.
The insolvency move is the latest event to unfold from the accounting scandal surrounding the digital currency debit card issuer.
Markus Braun resigned from Wirecard on June 19, shortly after the firm’s auditor Ernst & Young released its report.