A technology team from the scandal-plagued German payment company Wirecard has decided to join the financial technology group finleap’s new digital innovation unit, according to Reuters.

The team has been headed by Wirecard innovation labs head Joern Leogrande and includes six members.

The move comes as Wirecard’s insolvency proceedings are set to formally begin next month, which may lead to job losses at the Munich-based group, the report added.

Berlin-based finleap said that its new corporate innovation and corporate venture building unit will be headed by Leogrande.

The six-member team will support the digital transformation of companies, the report added.

Finleap currently operates 11 startups across the banking, insurance, and asset management industries.

Wirecard scandal

In June 2020, Wirecard filed an application to open insolvency proceedings with the Munich District Court, reeling from a billion-dollar balance sheet scandal.

Its auditors Ernest & Young (EY) said Wirecard owes ‎€4bn ($4.5bn) to creditors after it admitted that €1.9bn ($2.1bn) had gone missing from its books.

The scandal led to the arrest of former Wirecard CEO Markus Braun and other executives on suspicion of running a criminal racket that defrauded the creditors.

However, they denied any wrongdoing, while former Wirecard COO Jan Marsalek is currently on the run.

Recently, Wirecard administrator Michael Jaffe agreed to sell Wirecard’s Brazil business and UK assets to Railsbank.