Management at TROOPS, Inc. maintains that the short-seller report ignores the current status of its legal battles in the Hong Kong High Court. In June 2025, the court held the company and several subsidiaries jointly and severally liable for payments totaling HK$404.8 million. However, the company emphasizes that it is only one of eleven defendants in the case and that other parties have already provided assets as security.
In section Releases
TROOPS Rebuts Short-Seller Claims Amid Hong Kong Legal Appeal
Hong Kong-based conglomerate TROOPS, Inc. has publicly challenged a recent report by Muddy Insights, dismissing the short-seller’s claims as speculative and factually selective. The company argues that the report mischaracterizes its ongoing legal exposure and incorrectly predicts imminent financial collapse or regulatory repercussions for its Nasdaq-listed operations.
Crucially, the company has secured a stay of execution on the judgment, which remains in effect until the resolution of an appeal scheduled for February 2027. This legal protection halts enforcement actions, including a related winding-up petition in the Cayman Islands. TROOPS, Inc. asserts that it remains a going concern and intends to pursue the appeal process to overturn or reduce the court’s judgment. The company explicitly rejected the report's premise that the August 20, 2026, hearing would trigger an immediate adverse outcome, labeling such conclusions as unsupported by the court record.
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