Hindenburg Research To Shut Down: A Look Back At Short-seller's Allegations Against Adani Group

Anderson, who founded Hindenburg in 2017, explained in a post on the company’s website that the decision was prompted by the "intense, and at times, all-encompassing" nature of the work

As soon as the Indian markets opened on Thursday, Adani Group stocks began to surge

Source : X

Hindenburg Research founder Nathan Anderson announced on Wednesday that he would disband the firm, whose reports led to massive short-selling by investors and sparked investigations by authorities. These reports caused billions in losses for companies, including India’s Adani Group and US-based Nikola. Anderson, who founded Hindenburg in 2017, explained in a post on the company’s website that the decision was prompted by the "intense, and at times, all-encompassing" nature of the work.

In his message, Anderson wrote, “As I’ve shared with family, friends and our team since late last year, I have made the decision to disband Hindenburg Research. The plan has been to wind up after we finished the pipeline of ideas we were working on. And as of the last Ponzi cases we just completed and are sharing with regulators, that day is today.”

“I write this from a place of joy. Building this has been a life’s dream. I did not know at the outset if it would be possible to find a fulfilling path. This wasn’t an easy option, but I was naïve to the danger and felt drawn to it magnetically,” he wrote.

He added,“…it wasn’t always obvious to me, but I now view all of this as a love story. To my wife, you have been so patient with me. It has not been easy, to put it mildly, and I am forever grateful that you have sacrificed so much and pushed forward with me. And now, my dear, we get to enjoy it together for as long as this world will let us.

“To my family and friends, I’m sorry for the times I have ignored you while I let my attention be drawn away. I can’t wait to have more time to share with you together. Lastly, I want to express how grateful I am to our readers," he concluded.

As soon as the Indian markets opened on Thursday, Adani Group stocks began to surge.

Here Is A Look At The Hindenburg Research Reports On Adani:

On January 24, 2023, US-based short seller Hindenburg Research released a report titled ‘Adani Group: How The World’s 3rd Richest Man Is Pulling The Largest Con In Corporate History,’ alleging stock manipulation and accounting fraud spanning decades. The report accused the Adani Group of engaging in fraudulent activities such as creating offshore shell companies in tax havens, using fake import-export documentation, and laundering money from their publicly listed companies. The Adani Group denied all allegations.

On August 10, 2024, Hindenburg Research issued a second round of accusations, this time targeting Securities and Exchange Board of India (SEBI) Chairperson Madhabi Puri Buch. The report claimed that Buch had a conflict of interest, alleging that her reluctance to act on the original report about the Adani Group was influenced by her investments in offshore funds linked to the conglomerate. It was claimed that Buch and her husband, Dhaval Buch, had invested in the IPE Plus Fund 1 (Mauritius) and the Global Dynamic Opportunities Fund (Bermuda), which had ties to Vinod Adani, Gautam Adani’s elder brother. Both Madhabi Puri Buch and Dhaval Buch denied these allegations.

On September 12, 2024, Hindenburg Research posted on social media that Swiss authorities had frozen over $310 million in funds across several Swiss bank accounts in relation to a money laundering and securities investigation involving the Adani Group. The report cited Swiss media outlet Gotham City, which stated that the Geneva Public Prosecutor’s office had been investigating the Adani Group since 2021, even before Hindenburg’s initial allegations.