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<ul class="summary-list"><li><keyword id="9916845" type="UNKNOWN" weightage="60" keywordseo="hindenburg-research">Hindenburg Research</keyword> says <keyword id="11056926" type="UNKNOWN" weightage="60" keywordseo="ebang-international">Ebang International</keyword> is "yet another crypto China hustle." </li><li>The short-seller says Ebang has inflated its crypto exchange volumes and exaggerated mining machine sales.</li><li>Hindenburg also says Ebang's CEO Dong Hu used proceeds from US public offerings to pay off debts to his relatives.</li></ul>Hindenburg Research said <a href="https://markets.businessinsider.com/stocks/ebon-stock">Ebang International</a> is a "yet another crypto China hustle" taking US investors' cash in <a href="https://hindenburgresearch.com/Ebang/">a report</a> on Tuesday.The short-seller, who recently <a href="https://www.businessinsider.com/hindenburg-research-kandi-electric-vehicle-startup-china-nikola-gm-2020-12">unraveled Nikola's deal</a> with GM after a scathing report on the EV maker, is targeting Ebang and its CEO Dong Hu with serious allegations of shifting money to relatives to repay loans, mischaracterizing sales in its <keyword id="6354947" type="UNKNOWN" weightage="60" keywordseo="bitcoin">bitcoin</keyword> mining machine business, and inflating its crypto exchange volume metrics.Ebang International is a Hangzhou, China-based manufacturer of bitcoin mining machines that <a href="https://ir.ebang.com.cn/news-releases/news-release-details/ebang-international-announces-official-launch-cryptocurrency">recently launched</a> a bitcoin exchange called "Ebonex."The company has raised roughly $374 million from US investors in four public offerings since going public in June 2020. <keyword id="11056927" type="UNKNOWN" weightage="60" keywordseo="ebang-stock">Ebang stock</keyword> hit record highs of $11.78 per share on March 17 before a dramatic fall. Below Insider details a few of the claims against Ebang in Hindenburg's report:<ul><li>Hindenburg says that in November 2020 Ebang tapped the market for its first secondary offering with a $21 million raise claiming proceeds would go "primarily for development". Then, the company repaid $21 million in loans to Ebang Chairman and CEO Dong Hu's relative.</li><li>Hindenburg says Ebang claims to be a "leading bitcoin mining machine producer," but sales have dwindled to just 6,000 units in the first half of 2020, down from over 400,000 in 2018. </li><li>Hindenburg says Ebang twice applied for a listing on the Hong Kong Stock Exchange, attempting to raise as much as $1 billion(which can be confirmed by <a href="https://www.reuters.com/article/us-bitcoin-hongkong-ipo/chinese-bitcoin-mining-gear-makers-set-sights-on-worlds-largest-bitcoin-ipos-idUSKCN1IG0F2">Reuters reporting</a>), but the firm's Hong Kong IPO plans were suspended following involvement in an alleged sales inflation scheme with a company called Yindou. Ebang had previously informed investors about a loss of 144.9 million yuan due to a failed relationship with Yindou.com.</li><li>Yindou was a Chinese peer-to-peer online lending scheme that defaulted on 20,000 retail investors in 2018 leading $655 million to "vanish into thin air". According to Hindenburg, Chinese prosecutors have been pursuing a criminal case against suspects associated with Yindou. The short-seller report includes images of Chinese protestors in front of Ebang's HQ demanding answers after the Yindou blow-up.</li><li>Hindenburg also alleges that Ebang's crypto exchange, Ebonex, was bought from a "white-label crypto exchange provider called <a href="https://www.bluehelix.cloud/en-us/about_bhex">Blue Helix</a> that offers out-of-the-box exchanges for as little as no money up-front." According to the <keyword id="7224343" type="UNKNOWN" weightage="60" keywordseo="short-Seller">short seller</keyword>, Ebonex is also reporting "fictitious volumes" that can't be verified on "crypto exchange trackers such as FTX and CoinMarketCap."</li></ul>These are just a few of the complaints against Ebang International Hindenburg lays out in its <a href="https://hindenburgresearch.com/Ebang/">research report</a>.Ebang didn't immediately respond to Insider's request for comment on the short-seller report."$EBON is yet another cautionary tale for inexperienced investors. As is common with other China-based schemes, the co. will likely keep selling shares as long as investors are willing to keep buying them. We think this is a clear one-way street &amp; the capital isn't coming back," Hindenburg Research concluded in a <a href="https://twitter.com/HindenburgRes/status/1379414746311626753">Tuesday Twitter post</a> detailing its report.Ebang stock is down 21.18% as of 9:56 a.m. ET on Tuesday after the release of Hindenburg's report. <div type="image" title="EBON chart" height="708" width="828" msid="81935879" hostid="261"></div>

Short seller Hindenburg Research says Ebang International is a crypto 'China hustle' taking US investors' cash

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Short seller Hindenburg Research says Ebang International is a crypto 'China hustle' taking US investors' cash

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