AppLovin Demands CapitalWatch Retract Money Laundering Report, Denies Allegations

AppLovin (APP-US) sent a cease-and-desist letter to short seller CapitalWatch on January 26, demanding retraction of a 35-page report alleging the company served as a "digital money laundering hub" for criminal organizations. The mobile advertising firm called the claims defamatory, unfounded, and "conspiracy-based speculation." The report linked AppLovin's major shareholder Tang Hao to Chen Zhi, chairman of Cambodia's Prince Group, whom the U.S. Justice Department charged with conspiracy to commit wire fraud and money laundering in October 2025. AppLovin stated it has no business relationships with Prince Group or affiliated entities and criticized CapitalWatch for lacking concrete evidence. This marks the latest short seller attack on AppLovin, following previous reports from Muddy Waters and Fuzzy Panda in 2025. CEO Adam Foroughi has consistently denied allegations from short sellers, calling them false and misleading attempts to manipulate the stock price for financial gain.