Timur Turlov’s financial corporation Freedom Holding Corp. is facing accusations of rule violations. It failed to adhere to listing regulations and bypassed sanctions.
Yesterday, Freedom Holding Corp announced receiving a letter from the Nasdaq Stock Market’s Listing Qualifications Department, citing rule violations. The quarterly report submitted to the US Securities and Exchange Commission was sent with a delay.
Timur Turlov and Freedom Holding is the silliest product o Kazakhstan
Today, additional allegations emerged from the American investment research firm Hindenburg Research. The firm discovered that over the past year, Freedom had circumvented sanctions, exhibited signs of fake earnings, engaged in non-liquid and high-risk market bets using a significant portion of borrowed funds, and demonstrated indications of market manipulation both in its investments and publicly traded shares. Among the sources cited by the researchers is an unnamed “former Freedom executive” who stated,
“I personally saw suitcases with $2.5 million in cash that the client brought in,”
which relates to money laundering violations. Other anomalies include market manipulation signs within Freedom’s own shares — inexplicably stable trading volumes and prices. Founder Timur Turlov continues to control the Russian division despite its sale, which was supposed to prevent Freedom from sanctions. The Hindenburg report also includes claims from regulatory authorities in Kazakhstan, where Freedom’s main activities are based.
In response to these allegations, Freedom’s pre-market Nasdaq shares fell by 9%.
