Kristo Käärmann, one of the co-founders of Wise, has been undergoing a tax fraud investigation which left the company’s stock price to fall by about 2.8%. The investigation was initiated after the British Tax authority listed Käärmann publicly as an individual who defaulted on their tax payments. The estimated tax amount due for Käärmann was over 720,000 pounds.
Wise, the company, has hired its own external lawyers to look into Kristo Käärmann case and take action if needed. Both parties are working to determine a verdict which Kristo Käärmann reportedly stated that he would fully cooperate with.
Wise, previously called TransferWise, is a London-based financial technology company that specializes in transferring money overseas with ease. It this niche market, Wise has competitors like PayPal and Western Union, but has remained prominent in the UK.
The following sources were used for the article:
- FCA investigates Wise cofounder after tax default, The Guardian
- FCA launches investigation into Wise CEO after tax default, Financial Post
- CEO of $4.8 billion fintech Wise faces investigation over tax breach,CNBC