(Bloomberg) — The U.S. Securities and Exchange Commission is investigating Didi Global Inc.’s chaotic 2021 debut in New York, when the ride-hailing giant raised $4.4 billion days before revelations of a Chinese probe into data security tanked the stock.

Didi’s shares slid 7% in extended trading, deepening an 85% loss since its initial public offering in the summer of last year. The Chinese company said it’s cooperating with the probe, without providing further details. 

U.S. lawmakers had called last year for an investigation into Didi’s controversial IPO — the biggest by a Chinese firm since Alibaba (NYSE:) Group Holding Ltd. China’s cybersecurity watchdog stunned investors by announcing its investigation into Didi two days after the listing, suspending the internet giant’s main apps from domestic stores. It sparked a series of regulatory actions against gig-economy companies and the internet. This culminated in Didi’s delisting from New York. He was instead allowed to float in Hong Kong. Bloomberg News reports that regulators have demanded more severe sanctions. Bloomberg News says the suspension of this process is over.

It’s unclear when the SEC launched its own probe into the matter. Didi spent just a few words on the U.S. inquiry well into a 170-plus page regular filing on May 2. Spokespeople from Didi and SEC declined comment. 

“After our initial public offering in the United States, the SEC contacted us and made inquiries in relation to the offering,” the filing read. “We are cooperating with the investigation, subject to strict compliance with applicable PRC laws and regulations. We cannot predict the timing, outcome or consequences of such an investigation.”

Didi, once China’s most popular startup, is now in uncertainty as the SEC investigates. Didi will soon be leaving New York bourses following orders from Beijing. The company, once worth about $80 billion, is grappling with the broader fallout after proceeding with its IPO despite regulators’ objections. It is likely that its stock will be available for trading over-the-counter on the so-called Pink-sheets Market, where penny stocks are traded and more risky business. Didi said last month it hadn’t applied to move to another exchange, surprising investors who anticipated a smoother transition. 

Bloomberg News reported that the company was in discussions with China’s Cyberspace Administration about possible fines and other punishments. But central government officials told the they’re not satisfied with the proposed punishments and asked for revisions, people familiar with the matter have said.

Didi shareholders can vote at an extraordinary meeting that will be held on May 23, on the delisting of Didi.

Beijing has put Didi in a difficult position: Full Charged

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