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Paysafe Group Rejects allegations of facilitating illegal gambling
PAYSAFE IN THE SPOTLIGHT
Rejects allegations of facilitating illegal gambling and dubious business methods by short seller firm.
Payment services provider Paysafe Group plc refuted a blog post, published by US short selling firm Spotlight Research Tuesday, which alleged dubious business dealings with regard to Chinese capital control evasion and claims of enabling illegal gambling.
Paysafe’s share price plummeted almost 38 percent on the back of the publication, recovering modestly to a 16.74 percent dip at close of trading today following the company’s denial of the claims.
A press statement refuted the post saying “all material information in the report is either factually inaccurate or has been previously disclosed” while claiming Spotlight Research had an interest in seeing the Paysafe share price fall.
Spotlight Research’s post claimed PaySafe was at risk of being investigated by regulators and accused the company of facilitating illegal gambling through its Asian operations in collaboration with Bet365.
“The Group has a history of significant, transparent disclosure to the market, publishing two prospectuses in 2015 and being subject to substantial additional scrutiny through a full UKLA listing process as part of its move to the Main Market of the London Stock Exchange,” PaySafe’s statement reads.
The original post on Scribd can be accessed here: https://www.scribd.com/document/334063463/Pay-Safe
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