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Short-Seller Hindenburg Takes Aim at Freedom Holding Corp. Stock

Short-selling firm Hindenburg Research is betting against shares of Kazakhstan-based Freedom Holding Corp

A Nasdaq-listed financial conglomerate catering to countries in Eastern Europe and Central Asia.

Tweet on Hidensburgh short-selling bet

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Shares in Freedom were down about 3% in Tuesday trading on elevated volume.

In its report,

Hindenburg alleged that Freedom has functioned as a conduit for sanctions evasion in the wake of the Russian invasion of Ukraine while also fabricating revenues through related party transactions and manipulating its own shares through two small brokerages. The firm also said that Freedom is the subject of an undisclosed SEC investigation.

The Wall Street Journal was not able to immediately verify several of Hindenburg’s claims. A spokeswoman for Freedom said Hindenburg’s allegations are without merit. The SEC said it “does not comment on the existence or nonexistence of a possible investigation.”

Corporate filings and enforcement orders from the PCAOB show that Freedom faces several issues relating to its corporate disclosures. The company has received two notices of potential delisting from the Nasdaq after missing deadlines to file their financial statements.

Freedom’s annual statement for 2022, filed earlier this month, disclosed that the company had provided brokerage services to sanctioned individuals and entities through March of this year.


Image: Hindenburg report