Shares of Freedom Holding are sinking after Nathan Anderson’s Hindenburg Research revealed a new short position in the company. The firm says its research on the company “unveiled a laundry list of red flags,” including evidence that Freedom “brazenly skirts sanctions,” shows “hallmark signs of fake revenue,” commingles customer funds “then gambles assets in highly levered, illiquid, risky market bets,” and displays “signs of market manipulation in both its investments and its publicly traded shares.” Hindenburg found that Freedom still does business in the Russian market, and that the company “has openly flouted sanctions” along with anti-money laundering and know-your-customer rules. Shares of Freedom Holding are down 12% to $66.90 in premarket trading following the short report.
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