Shares of the Kazakhstan-based financial services company, Freedom Holdings (ASX:FRHC), have taken a hit of 5.4%, reducing its market value to $71.65 following a key announcement by U.S.

short seller Hindenburg.

Hindenburg reportedly has initiated short positioning in the retail securities broker, accusing Freedom Holdings of inconsistently dodging sanctions and exhibiting clear signs of false revenue generation.

Freedom Holdings, however, has yet to respond publicly to these allegations.

Amid last year’s political tensions stemming from the Ukraine conflict and accompanying restrictions, Freedom Holdings made a strategic decision to break away its Russian subsidiary from its core operations.

Hindenburg has been a prominent player in short-selling attacks previously this year.

Its activities have even rattled major businesses including the Indian multinational corporation Adani Group and the investment firm Icahn Enterprises.

Despite the current situation, Freedom Holding’s shares have seen a 30% increase Year to Date.

Freedom Holdings (ASX:FRHC) is a financial services firm from Kazakhstan that specializes in retail securities brokerage.