Wise PLC, the London-listed fintech that built its brand on cheap, transparent cross-border payments, is facing a crisis that’s anything but transparent. Belgian prosecutors have opened an investigation into the company’s accounts for possible money laundering tied to fraud, drug trafficking, and corruption.
The stock market’s reaction was swift and brutal. Wise shares plunged 18% on the news, erasing billions in market value.
What Belgian prosecutors found
The investigation centers on Wise accounts that appeared in judicial requests spanning more than 30 European jurisdictions. The total volume of suspicious transactions linked to Wise sits at approximately €500 million. Belgian authorities reportedly received hundreds of judicial requests that collectively painted a picture concerning enough to warrant a formal probe. The alleged activities connected to these accounts include fraud, drug trafficking, and corruption.
The investigation was actually opened back in 2022, after the company’s accounts kept surfacing in cross-border judicial proceedings. The public disclosure of its scope and scale is what triggered the market selloff.
