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Hindenburg Research publishes investigation into fintech Tingo Group claiming financial fraud
Short seller, Hindenburg Research published a report Tuesday claiming that Tingo Group is a scam and has fabricated its financials.
Hindenburg Research, a short seller based in Manhattan, published a detailed investigation into Tingo Group, a fintech and agri-fintech firm, claiming that that company is a scam with “fabricated” financials.
According to the fintech’s website, Tingo has operations in Africa, Southeast Asia, and the Middle East and subsidiaries such as TingoMobile, TingoPay, and a food division. Tingo, based in New Jersey, is listed on the Nasdaq under TIO.
Hindenburg, known for its groundbreaking reports on Indian firm Adani Group and more recently, Block, formerly Square, has previously led to stock drops and investor exits. Tingo Group appears to be the latest of the bunch, with shares down 58 per cent today.
The short seller asserts that Tingo Group’s CEO, Dozy Mmobuosi, has fabricated his bio, the company's financials, and the launch of an airline division, among other accusations. But, Hindenburg isn’t the first to sound alarm bells – Tingo’s co-chairman filed a public letter to Dozy saying he could not approve the company’s annual report (10K) due to critical questions that were left unanswered and had decided to resign from the board.
While Hindenburg Research is a short seller and a formal investigation is yet to be launched, they have built street credibility for their research around Adani Group. Tingo Group held a “special meeting of Tingo Group stockholders,” on Wednesday at 9 AM Eastern time, and put out the following comment:
"Tingo Group, a profitable and fast growing fintech and agri-fintech company, categorically refutes all the allegations and misinformation outlined in a report published by Hindenburg Research earlier today."
"The report, which contains numerous errors of fact, together with misleading and libellous content, appears to be a deliberate attempt to undermine the positive work that Tingo Group is undertaking across various worldwide markets."