Short seller Muddy Waters Capital announced it has taken out a short bet against Uruguayan payments firm dLocal, calling the company “likely a fraud,” which caused its shares to dramatically drop on Wednesday.
Texas-based Muddy Waters Capital published a research report on Wednesday during a conference in London. Its chief investment officer Carson Block said cited concerns about its disclosures to investors, its governance structure and controls of client funds. But in a statement on its website, Dlocal said Muddy Waters’ claims were “groundless” and will clarify the allegations in due course.