The U.S. Securities and Exchange Commission (SEC) has temporarily stopped trading Tingo Group’s shares.
The SEC was worried about how much and correctly the public could find out about Tingo Group. Due to a lack of “adequate and accurate” information, Agri-Fintech Holdings, a company connected to the Tingo name, is being suspended until November 28.
The Nasdaq-listed company Tingo Group provides services in agriculture and finance technology across Africa, the Middle East, and Southeast Asia.
A temporary suspension by the SEC will end on November 28. The SEC warned brokers and anyone interested in Tingo to “carefully consider” what it did and “any information subsequently issued by the company.”
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Tingo Group faces new allegations
In February 2022, Nigerian businessman Odogwu ‘Dozy’ Mmobuosi’s Tingo Group was reportedly seeking $500 million at a valuation of $6.3 billion.
In June, short-seller Hindenburg Research called Tingo an “obvious scam,” disputing its data. Tingo denied the claims, but the SEC’s action raised more doubts about the company.
Tingo released “profitable” third-quarter figures despite SEC concerns. The company earned $586.2 million and $2.4 billion in the three and nine months ending Sep. 30, 2023. The Nigerian currency depreciation hurt third-quarter performance, according to Tingo.
The SEC’s trading limitations and Hindenburg’s charges have tarnished Tingo’s reputation. The company proposed buying 6 million smartphones for farmers, manufacturing branded food products, and launching in Pakistan. The SEC advises brokers and interested parties to assess its actions and Tingo’s subsequent information carefully.
The African IT world is growing sceptical of Tingo’s quick development and its financial data. The SEC’s probe adds uncertainty to Tingo’s market position, forcing stakeholders to monitor events in the coming weeks closely.
Trading in derivatives will gradually end at Huobi Global in New Zealand
Information about Tingo Group
A report by US investment research firm Hindenburg Research accused Tingo Group CEO “Dozy” Mmobuosi of repeatedly fabricating paperwork and financial accounts months ago.
A financial research firm labelled the Group’s schemes “extremely obvious scams with completely fabricated financials.” The scandal follows Tingo’s spectacular rise. The company was worth $6.3 billion and seeking $500 million in February 2022, according to Bloomberg.
Many allegations were filed against Tingo Group for dishonest business practices. The company’s honesty was then probed for phoney financial paperwork, dubious alliances, and unsubstantiated product promises.
Tingo Mobile, Tingo Pay, and NWASSA have issues reporting user numbers and running their companies. The CEO was also exposed for making fraudulent promises, having questionable qualifications, and failing to run firms. This lowered Tingo Group’s leadership credibility.
After the suspension, the Group said it was profitable and provided third-quarter data. The company’s future is uncertain due to the significant accusations and the suspension of the Tingo Group share trade.
Block & Leviton, a prominent legal firm, is investigating securities law offences. Tingo Group is under examination and at risk of losing its once-enviable reputation.