In a significant development, the U.S. Securities and Exchange Commission (SEC) has taken swift action, imposing a temporary suspension on the trading of Tingo Group’s shares.
The Nasdaq-listed company, known for its provision of financial and agriculture tech services in Africa, the Middle East, and Southeast Asia, finds itself in the spotlight as the SEC deems it an “obvious scam.”
According to techpoint.africa, Tingo came to the limelight in February 2022 when Bloomberg reported that the company wanted to raise $500 million, valued at $6.3 billion. In a report, the US-based investment research firm Hindenburg Research accused Tingo Group CEO, “Dozy” Mmobuosi, of repeatedly fabricating company records and financial statements.
The research firm dubbed the company an “obvious scam” and questioned the accuracy of its numbers. Tingo disputed the charges and answered by releasing what it describes as “profitable” third-quarter performance figures.
The charges against Tingo Group were extensive and depicted dishonest business practices in several industries, subjecting its integrity to intense scrutiny due to several issues.
These issues include falsified financial documents, questionable partnerships, and unsupported claims regarding product offerings. What now? The SEC, which expressed concerns about the accuracy and sufficiency of Tingo Group’s publicly accessible information, advised brokers and anyone interested in Tingo to “carefully consider” the action it has taken and “any information subsequently issued by the company.”
It added that the temporary suspension, which also affects Agri-Fintech Holdings, a company associated with the Tingo brand, will end on November 28 due to a lack of “adequate and accurate” information.