Today, Singularity Future Technology Ltd shares (NASDAQ:), are down almost 30% after Hindenburg Research published a brief report.

The key focus of the report is Singularity’s CEO, Yang Jie, who allegedly ran a $300 million Ponzi scheme that lured in over 20,000 victims.

Chinese media reports and Hindenburg claim that Jie is still wanted by Chinese authorities. Singularity moved to digital assets last year after he was elected as its leader. Singularity received a $200m order to manufacture crypto mining equipment.

“Singularity apparently expects investors to believe that it engineered, designed, tested, began to mass-produce, and sold hundreds of millions worth of crypto miners all within 3 months of its announced business pivot,” the report noted.

Accordingly, Yang Jie’s wife has served as VP of the SOS subsidiary that made the $200 million order.

In addition, shares rose to record highs after the company announced a $250 million partnership deal with Golden Mainland (the U.S. electricity producer). Singularity shares have dropped 75% in the past seven years.

The short-seller said it found that SOS Limited “seems to have fabricated key aspects of its own pivot to cryptocurrency. The company’s stock has fallen 90% since our research was released, and SOS recently disclosed an SEC investigation relating to our report.”

“Golden Mainland’s website was registered just 1 day before the Singularity press release, and the entity was incorporated just 6 months earlier. There was no evidence that the potential partner had any energy assets. We did not find 10 GW+. There is no evidence to suggest that Golden Mainland had a headquarters, or employees other than its founder. The SEC filing detailing the deal was for $250 million contained a Gmail account. We believe Golden Mainland is a blatant fabrication.”

Net-net, Hindenburg’s research showed that Singularity “is an extremely obvious total scam, with little to no actual business operations.”

By Senad Karaahmetovic