Kazakhstan-Based Fintech Firm Under Investigation by US Authorities

Published 7 months ago

Kazakhstan’s Freedom Holding is currently under investigation by the U.S. Department of Justice and the Securities and Exchange Commission (SEC) for alleged compliance issues, insider stock movements, and connections with an offshore affiliate linked to sanctioned individuals, according to a report by CNBC.

An In-depth Probe into Freedom Holding

The SEC’s Boston regional office has been investigating the company for several months, according to documents seen by CNBC and people knowledgeable about the matter. The U.S. Attorney’s Office for Massachusetts is also making preliminary inquiries into the company.

Accusations of Fake Revenue and Market Manipulation

In August, the company was criticized by Hindenburg Research, which stated that its investigation into Freedom Holding uncovered “hallmark signs of fake revenue” and market manipulation in both its investments and stocks. Hindenburg Research also claimed that the company “brazenly skirts sanctions”. However, Freedom Holding has refuted these allegations, stating that the claims in the Hindenburg report are without merit.

No Comment from SEC, DOJ, and Freedom Holding

When contacted for a comment on the matter, the SEC did not confirm or deny the existence of an ongoing investigation. Similarly, the Department of Justice and Freedom Holding have not yet responded to Reuters’ requests for comment.

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