Hindenburg Research founder Nate Anderson has announced the closure of the firm. With this, an important chapter investigating the hidden scams and irregularities of the corporate world comes to an end.
Hindenburg Research had targeted many big industrialists and companies through its short-selling strategy and high-profile reports. The most famous case among these was that of Adani Group led by Indian billionaire Gautam Adani, due to which the group had to suffer a loss of billions of dollars.
Now the question arises that why did Nate Anderson finally decide to close this research firm? Let us know.
What is the reason for closing Hindenburg Research?
Nate Anderson called closing the firm a “personal decision” and said there was no significant risk, health problem or personal issue.
According to Anderson,
“In the beginning, I felt I needed to prove some things to myself. Now I have finally found self-satisfaction, perhaps for the first time in my life.”
He said that now he wants to move towards a new chapter.
This decision makes it clear that Hindenburg’s mission has been accomplished and Anderson now wants to move on.
But is this really just a personal decision, or is pressure from legal disputes with Adani Group and other companies also involved?
Hindenburg VS Adani Group: Complete Timeline
24 January 2023 – Hindenburg made the biggest allegation against Adani Group.
Hindenburg Research claimed in its report that Adani Group has been committing stock manipulation and financial fraud for decades.
The title of the report was:
“Adani Group: How The World’s 3rd Richest Man Is Pulling The Largest Con In Corporate History”
Hindenburg made these allegations against the Adani family:
Stock manipulation by creating offshore shell companies in Mauritius, UAE and Caribbean tax havens.
Showing fake revenue by using fake import-export documents.
Money laundering and defrauding investors.
Adani Group had rejected all these allegations.
August 2024 – Hindenburg’s second attack on SEBI chairperson
On August 10, 2024, Hindenburg accused Madhabi Puri Buch, chairperson of Indian market regulator SEBI, of conflict of interest.
What were the allegations?
SEBI chairperson Madhabi Puri Buch and her husband Dhaval Buch, who were linked to the Adani Group, had made such investments.
SEBI was “reluctant” to stop the probe into Adani Group.
Questions were raised about the Butch couple’s investments in IPE Plus Fund 1 (Mauritius) and Global Dynamic Opportunities Fund (Bermuda).
Madhabi Puri Butch and Dhaval Butch denied all the allegations.
September 2024 – Claim of freezing of $310 million in Swiss bank accounts
On September 12, 2024, Hindenburg Research made a big claim quoting Swiss media outlet ‘Gotham City’.
What was the claim?
Swiss authorities froze assets worth $310 million (about Rs 2,600 crore) in several bank accounts linked to Adani Group.
The Swiss Federal Criminal Court (FCC) investigation accused Adani Group of money laundering and financial fraud.
Adani Group called this claim baseless.
Were Hindenburg’s reports merely a ‘short-selling’ tactic?
How did Hindenburg’s model work?
Hindenburg adopted the strategy of “short selling”.
Earlier they would issue reports of irregularities in a company, due to which the shares of the company would fall.
After this they would earn profits on falling shares.
After the Hindenburg report, Adani Group suffered a loss of billions of dollars, but Hindenburg made huge profits from it.
