Nowadays, shares of Singularity Future Know-how (NASDAQ:SGLY) stock fell as a lot as 32% in premarket trading after Hindenburg Exploration launched a brief report on the business. In the report, the brief vendor characterizes CEO Yang Jie as a fugitive on the operate from Chinese authorities.
Allegedly, Jie operated a $300 million Ponzi plan which affected more than 20,000 victims. Hindenburg says Jie then fled to the United States although at the very least 28 other individuals in the scheme went to jail. The company has verified with Chinese media and its “own checks” that the CEO presently has an superb arrest warrant in China.
Here’s what buyers must know about SGLY inventory and the brief report.
SGLY Stock: Hindenburg Releases Limited Report
Following fleeing to the United States, Jie “allegedly forged Chinese state documents” to hide his checkered past. Hindenburg notes that “Chinese police have extra forgery to his list of suspected crimes.”
In November 2021, Jie took around as CEO of Singularity and transferred the company’s concentration from logistics to cryptocurrency. In the month just before, the business had entered into a joint undertaking to produce crypto mining products. By January 2022, Singularity had obtained a $200 million machines buy from SOS Minimal (NYSE:SOS).
Hindenburg is skeptical of this speedy generation and changeover time. The quick seller states:
“Singularity apparently expects traders to imagine that it engineered, made, examined, began to mass-develop, and sold hundreds of thousands and thousands worth of crypto miners all in just 3 months of its introduced business pivot.”
In addition, Hindenburg claims the crypto mining gear offer is a “brazen undisclosed connected party offer.” This is due to the fact Jie’s spouse has served as vice president of the SOS subsidiary that ordered the products. In addition, the Singularity CEO “also controls an entity based mostly at the specific similar handle as the SOS subsidiary.”
Hindenburg Thoughts Singularity’s Crypto Mining Tools
Meanwhile, Hindenburg has doubts that Singularity’s “proprietary” mining tools ever existed. The business alleges that pictures and descriptions of the gear “match specifically with one more manufacturer identified as KOI Miner.”
Last thirty day period, Singularity also announced a partnership of up to $250 million with ability producer Golden Mainland. Nonetheless, Golden’s web site was registered just a working day prior to the announcement. The company was also integrated just 6 months prior. Hindenburg has identified “no indication” that Golden Mainland owns vitality belongings. It has also found “no evidence” of Golden Mainland’s headquarters or workers, other than for its founder’s e mail tackle.
Hindenburg has shared its findings with authorities and the Nasdaq. The agency is limited SGLY stock.
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On the day of publication, Eddie Pan did not keep (both straight or indirectly) any positions in the securities talked about in this post. The viewpoints expressed in this article are those people of the writer, subject matter to the InvestorPlace.com Publishing Tips.