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Hindenburg short on China-based blockchain firm SOS Ltd

(Adds more details from Hindenburg tweet)

Feb 26 (Reuters) – Short-seller Hindenburg Research said on Friday it was going short on Chinese blockchain firm SOS Ltd , saying the stock has significant regulatory risk, sending the company’s shares down 23%.

SOS could not be immediately reached for comment outside business hours in China.

“Stocks tied to blockchain have been on the run lately, swept up in the euphoria of bitcoin breaking all-time highs. $SOS has ridden this wave,” Hindenburg said in a tweet.

Shares of SOS, which changed its core business to emergency rescue services from fintech last year, has surged 250% this year.

The short-seller said it visited the address listed in the company’s regulatory filing and found it to be a hotel. (Reporting by Munsif Vengattil in Bengaluru; Editing by Shounak Dasgupta)

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