Ayodeji Ayenuwa
The United States Securities and Exchange Commission (SEC) has temporarily suspended trading in Tingo Group’s securities on the NASDAQ stock exchange.
The suspension, effective from November 14 to November 28, comes amidst concerns over fraud and the accuracy of the company’s financial statements.
In a statement dated November 13, the SEC expressed its position on the matter: “The commission is of the opinion that the public interest and the protection of investors require a suspension of trading in the securities of (Tingo).”
This move reflects doubts about publicly disseminated information since May 2022, particularly related to Tingo’s assets and operations.
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Tingo Group, listed on the NASDAQ, is obligated to adhere to U.S. laws governing global electronic securities trading.
The SEC’s action follows heightened scrutiny triggered by a report from Hindenburg Research, which labeled Tingo Group’s trading operations as an “obvious scam.” In response, Tingo defended itself, claiming that financial discrepancies were due to “typographical errors.”
The SEC, in its statement on Monday, highlighted the core issue: “It appears to the Securities and Exchange Commission that there is a lack of adequate and accurate information concerning the securities of Tingo Group because of questions and concerns regarding the adequacy and accuracy of publicly available information in the marketplace concerning Tingo Group.”
Despite Tingo’s denial, the SEC has cautioned “broker-dealers, shareholders, and prospective purchasers” to “carefully consider the foregoing information along with all other currently available information and any information subsequently issued by the company.”
While Tingo released its financial reports for the third quarter of 2023 during the SEC suspension, claiming $586.2 million in net revenues and gross profits of $137.9 million, it notably did not address the regulatory action.
This uncertainty adds to the skepticism surrounding Tingo’s credibility, with ongoing scrutiny into its practices and disclosures.
Techrectory with Agency Report.
