Hindenburg Research released a new report on Tuesday shorting Tingo Group, expanding in various business segments, and calling it an “exceptionally obvious scam”. The report highlights major inconsistencies and red flags in the company’s operations. After the release, shares of Tingo Group Inc plunged 50% on the Nasdaq in just one day, $1.32.

Short-seller Hindenburg Research accused the fintech firm of fabricating its financials. It also found major inconsistencies in the CEO’s background, unverified business claims and financial discrepancies.

Hindenburg called out the company’s founder, Dozy Mmobuosi’s claims of having developed “the first mobile payment app in Nigeria”, saying that they contacted the app’s actual creator, who called Dozy’s claims ‘a pure lie’.

According to the report, the company claimed its mobile handset business generated $128 million in revenue last year, saying these services are provided through an agreement with Airtel in Nigeria. The license type they claim did not exist until June 2023, Hindenburg said.

Hindenburg’s report claimed that the company’s food unit generates massive revenues despite having no food processing facility. The report said on the company’s website, the photo of the proposed food processing unit is a stock image of an oil refinery.

Tingo Group has diversified business interests in mobile phones, food processing, and online food marketplace operating in Africa, Southeast Asia and the Middle East. It refuted all the report’s allegations, saying it was full of “misleading and libellous content” and confirming that its accounting records and financial results are accurate.

This year, Tingo is Hindenburg’s fourth target, following Adani Group, Jack Dorsey’s Block Inc, and Carl Icahn’s Icahn Enterprises.