Hindenburg Research denies SEC probe amid allegations of Hedge fund collusion

Hindenburg Research, a US-based short-selling firm, has denied being under investigation by the Securities and Exchange Commission (SEC) following allegations of its founder Nate Anderson’s ties to hedge fund Anson Funds. The firm refuted claims made in documents filed in an Ontario court, calling them baseless.

A report by Market Frauds, citing court documents, alleged that Anderson collaborated with Anson Funds in preparing bearish reports, including one targeting Canadian company Facedrive in 2020. The allegations suggest Anderson published reports directed by Anson Funds, raising questions of securities fraud.

Hindenburg dismissed the report as being based on an “anonymous Tongan blog rife with factual errors,” asserting full editorial independence in all its publications. Anderson previously stated that Hindenburg receives leads from various sources, independently vetting all information before publication.

Emails cited in the allegations suggest Anderson consulted Anson Funds for input on reports and publication schedules. Anson Funds, which recently settled an SEC case for $2.25 million without admitting wrongdoing, allegedly influenced the content of reports to align with its financial interests.

Hindenburg gained international attention in 2023 after publishing a report on billionaire Gautam Adani’s conglomerate, leading to significant political and financial fallout. Last week, Anderson announced the closure of Hindenburg Research, expressing a desire to focus on personal time after years of high-profile investigations.

In his announcement, Anderson highlighted Hindenburg’s impact, stating, “Nearly 100 individuals have faced legal action due to our work. We shook empires that needed shaking.”

As scrutiny mounts, the SEC is yet to comment on whether the allegations against Anderson and Anson Funds will lead to further investigations.