Hindenburg connection of 'hedge fund' revealed, is this the reason why the company was closed? Nate Anderson under question

Toronto: Nate Anderson, who has announced the closure of research-investment firm Hindenburg Research, is under question for his alleged links with 'hedge funds' in preparing reports targeting companies. A hedge fund is an entity that receives money from large investors and invests in various items, including securities, to earn profits.

In a trove of documents filed in the Ontario Superior Court of Justice in a complex defamation lawsuit, Moez Kassam, the head of Canada's Anson 'hedge fund', said his company had shared research 'with a variety of sources' including Hindenburg's Nate Anderson. Portal 'Market Fraud' said court documents showed Hindenburg had colluded with Anson while preparing the report.

These allegations were made

Preparing recession reports without disclosure of participation could lead to securities fraud charges by the U.S. Securities and Exchange Commission (SEC). Where investment companies borrow securities and sell them on the open market, hoping to buy them back for less after the shares have fallen due to their negative reports against the company, the involvement of 'hedge funds' raises suspicions. This is because they may also be making parallel bets, which could put further downward pressure on share prices.

The website claimed that from email conversations between Andersen and Anson Funds we know for a fact that he was actually working for Anson and published everything he said to him, from target prices to reports. What should happen and what should not happen. He asked them several times if they wanted 'more'. What we can see in dozens of stock exchanges shows that he never had editorial control. He was being told what to publish.”

Also share screenshots of email conversations

Market Frauds has also shared screenshots of some email communications between Hindenburg and Anson in support of its allegations, which it claims it obtained through documents available in an Ontario court. “There are multiple securities fraud cases against both Anson Funds and Nate Anderson, and at the time of writing we have only investigated five percent of the cases,” it said.

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“From what we have read so far, it is almost certain that Nate Anderson will be charged with securities fraud in 2025 when the entire transaction between Hindenburg and Anson reaches the SEC.” Last week, Andersen announced the closure of Hindenburg Research, which made global headlines after publishing an explosive report about billionaire Gautam Adani's group, in January 2023. This gave rise to political controversies and the company suffered huge losses.