AppLovin issued a sharp rebuttal to a short-seller report alleging ties to a money-laundering network. The mobile advertising firm’s stock fell 4.7% after CapitalWatch claimed it served as a safe haven for illicit funds. The Palo Alto-based company called the report "rife with false, misleading, and nonsensical allegations."

The short seller focused on Hao Tang, a primary shareholder described as a fugitive linked to the $36 billion collapse of P2P platform Tuandai.com. The report alleged his equity represents laundered proceeds. AppLovin, a regulated NASDAQ entity, stated it cannot control who buys or holds its shares, pushing back against the claims.

CapitalWatch further alleged AppLovin’s AI-driven tools function as "digital weapons" for criminal syndicates. The company defended its compliance protocols, including rigorous KYC and tax verification, calling the premise economically "implausible." This follows previous critiques from firms like Muddy Waters, with CEO Adam Foroughi urging investors to "dig deeper."