On August 15, 2023, before the market opened, market analyst Hindenburg Research released a report entitled “Freedom Holding Corp: Brazen Sanctions Evasion, Hallmarks of Fabricated Revenue and Risky Bets with Commingled Customer Funds.” The report alleged, among other things, that Hindenburg’s research had “unveiled a laundry list of red flags including evidence that Freedom (i) brazenly skirts sanctions (ii) shows hallmark signs of fake revenue (iii) commingles customer funds then gambles assets in highly levered, illiquid, risky market bets (iv) and displays signs of market manipulation in both its investments and its publicly traded shares.”

On this news, Freedom stock declined by $2.44 per share, or 3%, to close at $73.27 on August 15, 2023. The next day, it fell a further $3.40 per share, or 4%, to close at $69.87 per share on August 16, 2023.