SoFi Fires Back, Threatens Legal Action Against Short Seller as CEO Buys Stock

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Rich Duprey

Wed, March 18, 2026 astatine 9:13 AM CDT 5 min read

SoFi Technologies (SOFI) faced allegations from Muddy Waters Research of accounting manipulation, including allegedly understated indebtedness losses and $312 cardinal successful unrecorded liabilities that inflate adjusted EBITDA by astir 90%, though the institution dismissed the claims arsenic factually inaccurate and threatened ineligible action.
CEO Anthony Noto purchased astir $500,000 of banal astatine $17.32 per stock pursuing the report’s release.
Muddy Waters alleged SoFi relies connected serial equity dilution and off-balance-sheet accounting tactics to disguise deteriorating indebtedness economics, portion the institution countered that it operates nether strict Federal Reserve and OCC oversight arsenic a GAAP-compliant nationalist slope holding company.
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Muddy Waters Research unleashed a scathing onslaught connected SoFi Technologies (NASDAQ:SOFI) yesterday, branding the fintech lender a “financial engineering treadmill” alternatively than a genuine maturation business. The abbreviated seller alleged assertive accounting maneuvers, including understated indebtedness losses, inflated fair-value gains, off-balance-sheet indebtedness disguises, and astatine slightest $312 cardinal successful unrecorded liabilities that supposedly inflate adjusted EBITDA by astir 90%.

In swift response, SoFi dismissed the claims arsenic “factually inaccurate and misleading,” citing a “fundamental deficiency of understanding” of its fiscal statements and concern model. The institution threatened to research imaginable ineligible enactment and emphasized its compliance arsenic a highly regulated slope holding company. Adding to the drama, CEO Anthony Noto purchased astir $500,000 of SOFI banal the aforesaid day. Does the Muddy Waters study clasp water, oregon has SoFi’s robust defence exposed its errors?

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The study paints SoFi arsenic reliant connected serial equity dilution to money a fragile ecosystem of accounting optics. Central claims see personal-loan charge-off rates allegedly manipulated to 2.89% reported versus a existent 6.1%, achieved by parking delinquencies successful unconsolidated vehicles and selling loans conscionable earlier the 120-day threshold. This supposedly enables overstated just values and $259 cardinal successful unwarranted 2025 gains.

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