WeTrade internal audit finds $2M expenditure from departing executives

WeTrade announced that the company conducted an internal audit of departing executives and directors and found that the former COO Zhuo Li and former CFO Jianda Xu had a expenditure of $2M, which has a lot doubts after investigation. At present, the company has reported the matter to PCAOB and submitted all information of the matter to the Chinese police. The company said, “In July 2022, the former COO Mr. Zhuo Li and former CFO Mr. Jianda Xu , under the pretext of paying guarantee and consulting fees to NASDAQ, allocated a huge expenditure of $2 million to “About Investment Pte. Ltd.”. After verification by the registration office, the company is actually 100% owned by a Chinese people named Li Jiaming. The investigation found that on November 22, 2022, when TAAD, the former auditing company of WeTrade, questioned Mr. Jianda Xu about this $2 million through a WeChat group, Mr. Jianda Xu clearly replied, “Nasdaq instructed us to pay About Investment.”. On November 8, 2023, when we sent an email to the official Nasdaq to verify this payment, Officer Ellen M. Ignacio replied, “To the best of the knowledge of Nasdaq Listing Qualifications’ Staff, we are not aware of any request to pay movies to About Investment.” Then we inquired with the relevant employees and learned that at 20:26 on April 13, 2023, Mr. Jianda Xu requested the employees to “help me put Zheng Dai’s signature on the $2 million contract” through WeChat. However, when the employees did not respond, at 20:51, Mr. Jianda Xu said through WeChat, “It’s done, I have asked Xin Wang to do it”. Xin Wang is Mr. Jianda Xu’s assistant. We have checked the 2022 annual report of WeTrade and can’t find the confirmation letter and true records for the $2 million. Mr.Daxue Li , an independent director of WeTrade, multiple emails AssentSure Pac Audit Company from November 13, 2023 to November 21, 2023, requesting an explanation from AssentSure regarding the fact that the 2022 annual report did not truthfully reflect this $2 million matter. So far, we did’t receive any response from AssentSure. Now We have reported this matter to PCAOB. At present, the company has also submitted all the information of the matter to the Chinese police, and will protect the legitimate interests of the company and shareholders through legal means. The company will never tolerate malicious fraud or intentional harm to the interests of the company and shareholders. The Company will provide a timely update on the progress of the $2 million matter and provide a fair explanation to shareholders.”