Munich prosecutors said on Tuesday that the former chief of stricken payments provider Wirecard Markus Braun would be released on bail for five million euros (R97 million).
The Austrian tech entrepreneur was arrested amid one of the biggest financial frauds of recent years, in which the company admitted 1.9 billion euros - or some R37 billion - likely did "not exist".
"Enforcing the arrest warrant is not seen as necessary," prosecutors said in a statement, noting that Braun gave himself up willingly Monday and adding that he will have to report to police each week.
AFP previously reported that in Wirecard's case, 1.9 billion euros ($2.1 billion) supposedly sitting in trust accounts in the Philippines, made up a quarter of the company's balance sheet.
But "on the basis of further examination... there is a prevailing likelihood that the bank trust account balances in the amount of 1.9 billion EUR do not exist," Wirecard said Monday.
The admission follows more than a year of reporting, especially by the Financial Times, on accounting irregularities in the company's Asian division.