Chris Higgins . Business . Tuesday 21st April 2015 . 13:41
Trig Social Media, sponsor of Smite and League of Legends teams and the highest-grossing StarCraft II player in the world, is under investigation by multiple European financial authorities for ‘suspicions of irregularities.’
The Swedish Economic Crimes Bureau and the German Federal Financial Standards Agency (FSA), BaFin, are investigating the Swedish company after their auditors PwC stepped down from their duties prematurely. The accounting firm filed a notice of early termination to the Company Registration Office on April 17 when their own analysis didn’t match Trig’s stated numbers.
“Trig Social Media has on a repeated number of occasions emphasized the importance of their member database of more than 3 million members,” PwC stated in their termination notice. “Our analysis has revealed that the company has a very low proportion of active members that generate revenue.”
On top of PwC’s reports, Trig’s legal advisor Lars Hellewig left his position on the board of directors last week amid falling sales reports from last quarter of 60,000 units compared to 232,000 during the same period in 2014.
The social media company, which floated on the Frankfurt Stock Exchange in September last year, opened at a value of 5m Swedish Krona (~