Muddy Waters alleged in its reports that SoFi Technologies have material misstatement of at least $312 million of uncensored debt.
Short seller Muddy Waters Research on Tuesday revealed a short position on SoFi Technologies (SOFI) and alleged that the financial technology firm had a material misstatement of at least $312 million of unrecorded debt.
“If we are correct, it raises the possibility that there are more extensive misstatements we have not detected,” Muddy Waters said in its report.
“SOFI is a financial engineering treadmill, not a healthily growing origination business. SOFI shareholders are incessantly diluted so management can hit bonus targets through GE Capital-style loan marks and Enron-esque off-balance-sheet structures that disguise borrowings as revenue,” it added.
Shares of SOFI fell nearly 5% at the time of writing.
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