Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.
In an article out Friday, Forbes author Brad Thomas uncovered new information regarding United Development Funding IV (NASDAQ: UDF), the alleged "Ponzi-scheme" and the anonymous poster who circulated the allegation.
The piece outlined how hedge fund investor Kyle Bass' recently launched a website, on which Bass exposed his firm's opinions toward UDF, subject of much controversy thanks in large part to the previously anonymous website Harvest Exchange.
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Thomas, who covered the potential "Ponzi-scheme" late in 2015, laid out the evidence found on Bass' site, commenting that Bass seems to have "been the face behind the anonymously written content on the Harvest website."
Furthermore, Thomas quotes Bass as writing, "[A]ccording to the SEC a Ponzi-scheme is an investment fraud that involves the payment of purported returns to existing investors from funds contributed by new investors," and that the "SEC has been the subject of a non-public fact-finding investigation being conducted by the SEC (according to disclosures."
Bass' firm, Hayman Capital Management, L.P., has a short position in UDF's common stock and therefore, "will profit if the market price for the common shares decline, and conversely, Hayman will lose money of [sic] the market price increases," Thomas quoted.
Benzinga Covered The Story Early Friday
Earlier on Friday, Benzinga's news desk published an article regarding the situation, indicating that "a source familiar with the matter has told Benzinga that Hayman Capital was the author of the anonymous Harvest report."
Benzinga also previously explained that according to Bass, "[T]he hedge fund is short UDF because it has ‘exhibited characteristics consistent with a Ponzi scheme' larger than $1 billion. Bass cited UDF's use of new investor money to pay existing investors, a distorted track record and its use of complex real-estate backed loans to confuse ‘Mom and Pop' investors.",/p>
Following the Harvest article's publication, UDF tumbled $7.45, from $17.00 to $8.55. Throughout the day, UDF remained fairly flat at the $9.00 level until it once more plummeted shortly after 2 p.m. EST. At the time of this publication, the stock is down 46.07 percent on the day and trading at $5.50.
Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.