The Wirecard scandal serves as a timely warning for regulators that have eased their rules to nurture startups into the next billion-dollar unicorn. Investors need to be extra vigilant too. On Thursday, the digital-payments company started bankruptcy procedures due to “impending insolvency and over-indebtedness.” German officials are under fire for failing to investigate—and even pushing back against—accusations that something was fishy in its accounts. Regulators seem to have been more cheerleaders for the former market darling...

Source: Wall Street Journal June 25, 2020 09:45 UTC