After the market closed on August 12, 2022, Singularity Future Technology Ltd. disclosed that CEO Yang Jie tendered his resignation earlier in the week after being suspended by the company’s Board of Directors. The Board suspended Jie on the recommendation of a special committee formed to investigate allegations raised in a Hindenburg Research report issued May 5, 2022. The Hindenburg report alleged that Jie was a fugitive on the run from Chinese authorities for running a $300 milion ponzi scheme before he fled to the US while others involved were sentenced to prison terms in China.
On April 11, 2022, Singularity Future Technology issued a press release announcing a $250 million joint venture agreement with an entity called Golden Mainland Inc. to scale bitcoin mining operations. The May 5th Hindenburg report stated about the agreement, “[w]e also found no evidence that Golden Mainland has a headquarters or any employees aside from its founder, who used a Gmail address on the SEC filing detailing the supposed $250 million deal. We believe Golden Mainland is a blatant fabrication.”
Shares of Singularity Future Technology Ltd. fell 44% on April 11, 2022, the same day the joint venture with Golden Mainland was announced. Then on May 5, 2022, shares dropped more than 25% following the release of the Hindenburg report.
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