Ebang Plunges After Hindenburg Short of China Crypto Mining Machine Group

Ebang International shares plunged Tuesday after analysts at Hindenburg Research, a noted short seller, accused the China-based cryptocurrency group of the illicit use of capital raised from U.S. investors. Hindenburg, which said it has a short position in Ebang, said the group directed $103 million — most of which was raised from its June 2020 IPO — into “bond purchases linked to to AMTD (International)”, a Hong Kong-based underwriter, and a further $21 million to “repay related-party loans to Ebang Chairman/CEO Dong Hu’s relative.” Ebang’s recently-launched cyrptocurency exchange, Ebonex, reports what appears to be “fictitious volumes”, Hindenburg said, that implies…