A spokesperson for Freedom Holding, a company based in Kazakhstan, has confirmed that several U.S. regulatory authorities have requested information from the firm.
It’s important to note that, as of now, none of these authorities have brought any charges against the fintech company.
Earlier in the day, CNBC initially reported that Freedom Holding was the subject of investigations by the U.S. Department of Justice and counsel from the Securities and Exchange Commission (SEC).
These investigations revolve around concerns related to compliance issues, insider stock transactions, and the involvement of an offshore affiliate linked to individuals subject to sanctions.
Freedom Holding’s leader, Timur Turlov, expressed confidence in the company’s ability to provide regulators with a comprehensive explanation of their actions, detailing when and why they took specific steps, all of which they assert were in compliance with the law.
The SEC has chosen not to comment on the existence or nonexistence of a potential investigation, while the Department of Justice has yet to respond on this matter.
Back in August, Freedom Holding faced allegations from Hindenburg Research, which claimed that their investigation into the company uncovered indications of fabricated revenue and market manipulation in both their investments and stock.
Hindenburg also alleged that Freedom Holding was actively circumventing sanctions. Freedom Holding swiftly refuted the allegations made in the Hindenburg report, asserting that they lacked merit.