In a startling sequence of events, Tingo Group, a once-thriving fintech entity, is now caught in the throes of a deepening crisis. The latest blow comes as the company’s CEO, Dozy Mmobuosi, faces serious fraud charges filed by the US Securities and Exchange Commission (SEC). This development marks the culmination of a series of allegations, regulatory interventions, and market turbulence, spelling out a grim narrative for the embattled company.

The saga began on June 6, 2023, when Hindenburg Research, a reputable short seller, released a damning report that pierced through the veneer of Tingo Group’s success. The report alleged financial improprieties, casting doubt on the legitimacy of Tingo’s reported user base, pointing to licensing irregularities, and raising questions about the veracity of the company’s financial practices.

The aftermath of Hindenburg’s revelations was swift and brutal. Tingo Group’s stock prices plummeted by an alarming 60%, triggering a seismic shock in the market. Investors, once optimistic about the fintech giant’s future, found themselves facing unprecedented uncertainty, with growing concerns over the integrity of their investments.

In response to these grave allegations, Tingo Group’s independent directors took a proactive stance. On August 30, 2023, they initiated a comprehensive internal investigation, enlisting the expertise of independent counsel and a top-tier legal firm to scrutinize the claims made by Hindenburg Research. The company aimed to address the allegations head-on and provide clarity to stakeholders amid the escalating crisis.

However, matters took a decisive turn on November 14, 2023, when the US Securities and Exchange Commission (SEC) stepped in, suspending trading in Tingo Group and its subsidiary, Agri-Fintech Holdings. The SEC cited concerns regarding the adequacy and accuracy of publicly available information, casting a dark shadow over the company’s operations.

The climax of Tingo Group’s ordeal has now unfolded with the SEC filing charges of “massive fraud” against CEO Dozy Mmobuosi. The charges allege Mmobuosi orchestrated a scheme to fabricate financial statements and engage in fictitious transactions through Nigerian subsidiaries, totaling billions of dollars.

Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert.  As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard

In a development that adds a new layer of intrigue to the ongoing saga surrounding Tingo Group, the multinational fintech giant, Nasdaq has issued a request for information following the expiration of the Securities & Exchange Commission’s (SEC) temporary suspension of trading in the company’s securities.

Tingo Group, Inc. (NASDAQ: TIO), a global player in the realms of fintech, agri-fintech, food processing, and commodity trading, disclosed today that it received Nasdaq’s information request despite the SEC’s lifting of the trading suspension on November 28, 2023. Nasdaq, however, has chosen to keep the trading of Tingo’s securities halted pending a thorough review of the provided information.

The temporary suspension, initiated by the SEC on November 14, 2023, cast a shadow over Tingo Group, prompting Nasdaq to scrutinize the situation further. The company, resilient in its stance, asserts its commitment to a transparent resolution by promptly responding to Nasdaq’s inquiry within the next 3 to 4 business days. Tingo Group emphasizes its willingness to cooperate fully with Nasdaq, aiming to expedite the review process and resume trading at the earliest opportunity.

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Tingo Group, listed as Nasdaq: TIO, operates globally with a significant presence in Africa, Southeast Asia, and the Middle East. The company’s diversified portfolio includes Tingo Mobile, a leading Agri-Fintech entity with a focus on innovative products, and TingoPay, a SuperApp in collaboration with Visa, offering an array of B2C and B2B services.

The recent expansion of Tingo Mobile into international markets and strategic trade partnerships seeks to elevate the company’s reach. These initiatives are contracted to boost the number of subscribed farmers from 9.3 million in 2022 to over 32 million, providing them access to various services through platforms like the Nwassa ‘seed-to-sale’ marketplace.

Apart from its core business verticals, Tingo Group also operates in food processing through Tingo Foods and engages in commodity trading through Tingo DMCC, based in the Dubai Multi Commodities Center. Additionally, the company holds an insurance brokerage platform business in China and Magpie Securities, a regulated finance services Fintech business operating in Hong Kong and Singapore.

This recent development comes against the backdrop of a series of controversies involving Tingo Group. Hindenburg Research, renowned for its short-selling strategies, targeted the company on June 6, 2023, levying allegations of financial wrongdoing and misconduct. Tingo Group, however, chose to confront these claims head-on.

On August 30, 2023, the company’s independent directors initiated a thorough investigation into Hindenburg’s allegations. Engaging independent counsel and a top-tier U.S. law firm, Tingo Group meticulously examined the claims and emerged unscathed, refuting each of Hindenburg’s allegations with a clean bill of health.

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As Tingo Group navigates these challenging waters, stakeholders await Nasdaq’s review and the subsequent resolution that could determine the company’s trajectory on the stock market. The fintech giant remains steadfast in its commitment to transparency and cooperation, signaling its determination to overcome the hurdles it faces in the current financial landscape. 

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert. 
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard

 In a financial saga that could rival the most gripping courtroom drama, Tingo Group, Inc. (NASDAQ: TIO), a thriving fintech, agri-fintech, and food company, finds itself locked in an intense battle with the short seller Hindenburg Research. The latest chapter in this high-stakes showdown unfolded on September 5, 2023, when Hindenburg fired another salvo of allegations against Tingo. But Tingo Group is not backing down. In a statement released on September 6, 2023, the company boldly asserts that a comprehensive investigation conducted just days prior has debunked every single claim made by Hindenburg.

This financial thriller began when Hindenburg Research, known for its short-selling strategies, first targeted Tingo Group on June 6, 2023. Allegations of financial wrongdoing and misconduct were hurled at the fast-growing fintech company. However, instead of crumbling under the pressure, Tingo Group decided to fight back.

On August 30, 2023, Tingo Group’s independent directors launched a meticulous investigation into Hindenburg’s claims, leaving no stone unturned. Independent counsel meticulously reviewed evidence and identified areas that warranted further investigation. The company also enlisted the help of a top-tier U.S. law firm to conduct its own inquiry. The result? Tingo Group emerged from this intensive scrutiny with a clean bill of health, confidently refuting each and every one of Hindenburg’s allegations.

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One of the key points of contention was the company’s cash balances. Tingo Group, which operates in multiple countries, held accounts with major banks in Africa. To clear any doubts, the company’s legal counsel obtained bank statements directly from these financial institutions and conducted interviews. The result? The bank balances were confirmed and matched the company’s accounting records, proving that Tingo Group’s financial health was robust.

Hindenburg also took aim at Tingo Group’s relationship with its mobile phone supplier, UGC Technologies Limited. To unravel this mystery, Tingo Group provided extensive documentation of all transactions with the supplier. The investigation showed that Tingo Group’s supplier was indeed UGC Technologies Limited, a legitimate entity with offices in Africa and China, rather than the unrelated UGC Mobile Technologies in the U.S. This revelation further discredited Hindenburg’s claims.

The drama continued with Hindenburg’s allegations regarding Tingo Group’s cooperatives. Ailoje Royal Farms Multi-Purpose Cooperative and Kebbi (Dala) Multipurpose Cooperative Society, both key players in Tingo Group’s operations, were called into question. However, Tingo Group’s outside counsel conducted on-site investigations, inspecting a mountain of documentation and conducting video interviews with cooperative leaders. The results were crystal clear: these cooperatives were legitimate and played a vital role in Tingo Group’s business.

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As if that wasn’t enough, Tingo Group’s inventory management was scrutinized, with allegations of discrepancies in the handling of inventory. Tingo Group swiftly dispelled these accusations, providing a clear timeline of inventory sales that aligned with its financial records.

Hindenburg’s accusations even reached into Tingo Group’s dealings with telecom giants like Airtel. Yet again, Tingo Group was ready with evidence showing that it did not directly provide airtime and data services, instead relying on third-party vendors. The company also explained its Nwassa platform, highlighting its unique USSD-based system designed to operate in rural areas where traditional internet access is limited.

Tingo Group’s audacious response also addressed its flourishing export business, Tingo DMCC. Hindenburg had questioned the export records, but Tingo Group revealed that marine shipping records only represented a portion of their export activities. Overland transport was not accounted for in Hindenburg’s review.

And the climax of this financial thriller? The 38 questions submitted by Hindenburg on August 9, 2023, were systematically answered and debunked through the investigations, leaving no room for doubt.

In the end, the battle lines are clear. Tingo Group stands resolute, asserting that it has weathered Hindenburg’s storm of allegations. The company now turns the tables, investigating Hindenburg’s allegations against the founder of Tingo Mobile and Tingo Foods.

Tingo Group, Inc., a global fintech and agri-fintech conglomerate, remains undaunted in its mission to provide innovative products and services to millions of subscribers across the globe. With a commitment to transparency and integrity, Tingo Group vows to protect its shareholders and its reputation against all comers.

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The world watches as this financial saga unfolds, with Tingo Group and Hindenburg locked in a battle of titans, each determined to have the last word in this high-stakes showdown.

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert. 
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the con