WiseTech Global Ltd (ASX: WTC) shares fell heavily yesterday, plummeting 18% to levels last seen back in 2021.
Media reports state that the Australian Federal Police are investigating founder Richard White over alleged trafficking matters, relating to a former cleaner at WiseTech.
It has been claimed that White exploited the woman's immigration status and financial position and provided false information on a visa application.
WiseTech has not responded to the reports.
Image source: Getty Images
Why this is hitting WiseTech shares so hard
White's continued prominence at the company makes today's news particularly significant for shareholders.
WiseTech shares are now down more than 56% since the start of 2026 and around 70% lower than this time last year.
White co-founded WiseTech and served as chief executive until October 2024, before stepping down amid separate allegations relating to inappropriate behaviours.
He was later appointed Executive Chair and Chief Innovation Officer in February 2025 under a ten-year employment agreement. In this role, he retained significant influence over the company's product development and strategic direction.
A pattern of governance concerns
Today's allegations land on top of an already difficult governance backdrop.
In October 2025, the ABC reported that ASIC and the AFP had searched a WiseTech office as part of a separate investigation into alleged trading in WiseTech shares by White and three employees.
Macquarie noted that this investigation could take up to 18 months to resolve.
That earlier search triggered board turnover, including the resignation of four independent non-executive directors, and sustained media scrutiny that has weighed on investor confidence ever since.
The company is also midway through a major restructuring tied to AI-driven automation across the business.
Each of these issues alone could be manageable. Together, and now compounded by today's allegations, they have eroded the institutional confidence that previously supported WiseTech's premium valuation.
What the underlying business looks like
CargoWise generated US$682.2 million in revenue for WiseTech in FY2025. This is up 18% on the prior year, with growth continuing into FY2026 as first-half CargoWise revenue rose 12% to US$372.4 million.
CargoWise remains deeply embedded in the operations of major global freight forwarders. Switching away from the platform is expensive and disruptive for customers, providing a source of revenue stability even amid the governance turmoil.
The operational business and the governance crisis are, for now, two separate stories.
What happens next
The resolution of today's news will depend heavily on the outcome of any AFP investigation and on how WiseTech's board responds.
Bell Potter previously argued the worst was behind WiseTech following earlier governance issues. The broker noted that focus was returning to product momentum and a new commercial model, before today's fresh allegations reset that narrative entirely.
Until clarity emerges on both the legal matter and the board's response, WiseTech shares are likely to remain volatile, and investors should treat any near-term share price movements with appropriate caution given the seriousness and unresolved nature of the allegations.
Foolish takeaway
Today's news is serious. WiseTech's underlying logistics software business continues to perform, but the company's governance challenges have now reached a new and more serious level.
Investors considering WiseTech shares may want to wait for greater clarity on both the AFP investigation and the board's response before drawing firm conclusions about the path ahead.
