$\"Ebang$ <\/div>

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Ebang International\u00a0shares slumped lower Tuesday after analysts at Hindenburg Research, a noted short seller, accused the China-based cryptocurrency group of the illicit use of capital raised from U.S. investors.<\/p>\n

Hindenburg, which said it has a short position in Ebang, said the group directed $103 million — most of which was raised from its June 2020 IPO — into “bond purchases linked to to AMTD (International)”, a Hong Kong-based underwriter, and a further $21 million to “repay related-party loans to Ebang Chairman\/CEO Dong Hu\u2019s relative.”<\/p>\n

Ebang’s recently-launched cyrptocurency exchange, Ebonex, reports what appears to be “fictitious volumes”, Hindenburg said, that implies it’s one of the largest spot exchanges in the world “despite having no online presence.”<\/p>\n

Officials at Ebang International were not immediately available for comment when first contacted by TheStreet.<\/p>\n

“Ebang is yet another cautionary tale for inexperienced retail investors enthused by anything crypto-related,” Hindenburg said. “As is so common with other ridiculous China-based schemes, the company will likely keep selling shares as long as investors are willing to keep buying them. We think this is a clear one-way street, and the capital isn\u2019t coming back.”<\/p>\n