Paysafe Shares in the Red after Spotlight Research Report Allegations

Shares of Paysafe fell over 34% Tuesday after a document tied the group's operations to illegal gambling in China.

Paysafe Group plc (LON:PAYS), a UK payments provider, has incurred a massive share price decline Tuesday, falling by as much as -34.0% during European trading. The primary impetus behind the decline was the release of a report, ‘Paysafe: Material Risks From Regulatory Enforcement Action’ by an organization known as Spotlight Research, ultimately sending shareprices reeling.

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The report, which can be viewed by accessing the following link, accuses Paysafe of engaging with nefarious clients, some of which that are operating or engaging in illegal gambling. The report by Spotlight also points to Paysafe’s Asian e-wallet operation Quick Access, which allegedly was running amidst regulatory concerns in China, prompting cries of Chinese capital control evasion.

Chinese Connection

The recent document also allegedly links a former Paysafe executive to illegal Chinese gambling rings. For its part, Paysafe has vehemently shot down the report as being either factually inaccurate or previously disclosed.

Shareholders however were undeterred as the stock (LON:PAYS) plunged to 250p during European trading. However, after bottoming out at this figure, prices of Paysafe (LON:PAYS) have since risen to 302p at the time of writing, still down -18.5% on the day.

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