Shares of Uruguay-based payment processor DLocal Ltd (NASDAQ:) fell on Friday, falling more than 17% following allegations that it is under investigation in Argentina for “inappropriate” actions in foreign exchange and suspicious money transfers.
DLocal issued a press release refuting the claims and calling them “misleading”.
“To date, we have not been informed by any Argentine authority regarding an exchange investigation,” DLocal said in a statement. “We continue to process payments as normal in Argentina. We have been operating in the country since 2016 and have a strong local presence with over 150 employees spread across numerous offices.
DLocal was the target of notorious short seller Carson Block. Six months ago, Block, founder of Muddy Waters Research, accused DLocal of various lies, and he continued to insist that the company was a fraud.
Earlier today, Muddy Waters tweeted a link to an Infobae article that discusses the alleged investigations in Argentina.
“We will not be distracted by misleading claims. dLocal is committed to ensuring the integrity of all of its business activities and will continue to focus on providing the best and most comprehensive solution for our global merchants in every market in which we operate,” DLocal responded.