Core Viewpoint - Capitalwatch has accused AppLovin's core shareholder, Hao Tang, of colluding with a leader of a multinational crime organization to launder illegal funds through the Cambodian super app WOWNOW, converting them into advertising fees for AppLovin [1][11]. Group 1: Allegations and Investigations - Capitalwatch's investigation initially targeted the flow of illegal funds from the Chinese P2P platform "TuanDai Wang," revealing a vast money laundering network involving over a dozen U.S. listed companies, including AppLovin [4][5]. - The report describes a complex scheme where illegal funds are transferred out of China through underground networks, split into smaller amounts, and eventually injected into multiple U.S. companies [4][5]. Group 2: Evidence and Regulatory Actions - Capitalwatch claims to possess "nuclear-level" evidence that has been submitted to U.S. regulatory agencies, including the SEC and CFIUS, although they have chosen not to disclose this evidence publicly for legal and safety reasons [6][9]. - The organization has indicated that the evidence chain has been formally submitted to regulators, and they have provided a screenshot showing access from U.S. government IP addresses [6][9]. Group 3: Market Reactions and Company Response - Despite AppLovin's stock price rising after the short report was released, Capitalwatch remains unfazed, asserting that short-term price fluctuations do not undermine the validity of their evidence [10]. - The report emphasizes that even if AppLovin's management is not complicit, the company could still face significant legal and delisting risks if the source of funds is confirmed to be linked to money laundering [10]. Group 4: The "Ad-Tech Laundromat" Model - The report outlines a model termed the "Ad-Tech Laundromat," where illegal funds are converted into advertising fees through WOWNOW, ultimately becoming legitimate assets for AppLovin through revenue sharing and stock appreciation [13].

Core Viewpoint - Capitalwatch has released a short-selling report accusing AppLovin Corporation of systemic compliance risks and significant financial crimes related to its core shareholder structure [1][3]. Group 1: Allegations of Illegal Funding and Money Laundering - The report claims that AppLovin's major shareholder, Hao Tang, is linked to illegal funds from the Chinese P2P platform, Tuandai Network, amounting to approximately 9.57 billion USD [3][8]. - It is alleged that Hao Tang has connections to a gambling network, acquiring around 21.5 billion RMB (approximately 3.1 billion USD) in gambling proceeds [8]. - The report outlines a closed loop where illegal funds are converted into advertising fees through a Cambodian app, WOWNOW, and subsequently laundered through AppLovin [3][14]. Group 2: Family Conspiracy and Key Connections - The report identifies Ling Tang, who is believed to be Hao Tang's sister, as a significant shareholder in AppLovin, holding approximately 7.7% of the company [9][10]. - Evidence suggests that illicit funds were transferred to accounts controlled by Ling Tang, indicating a family conspiracy in the money laundering operations [10]. Group 3: Southeast Asian Criminal Network - The Prince Group, led by Chen Zhi, is identified as a key player in providing ongoing cash flow and laundering infrastructure for Hao Tang [11]. - The report highlights that the Prince Group has been designated as a transnational criminal organization by U.S. authorities, with Chen Zhi facing serious charges related to telecom fraud and money laundering [11]. Group 4: Capital Market Intersections - The report reveals a connection between Hao Tang and Chen Zhi through the Hong Kong capital market, particularly involving Geotech Holdings, which served as a platform for capitalizing on gray assets [13]. Group 5: Technological Complicity - AppLovin's technologies, Array and AXON, are accused of facilitating the operations of criminal groups by enabling the distribution of malicious software and online scams [14][15]. - The report claims that AppLovin's SDK includes commands that compromise user choice, effectively turning victims' devices into tools for advertisers [15]. Group 6: Money Laundering Mechanism - The report describes a laundering scheme where the Prince Group uses AppLovin's advertising platform to convert illicit funds into legitimate revenue through inflated advertising expenditures [16][17]. Group 7: Compliance Crisis and Regulatory Risks - AppLovin is said to be facing a compliance crisis, with potential risks of delisting if it is proven that major shareholders' funds are derived from criminal activities [18]. - The report calls for immediate regulatory action, including freezing shares held by Hao Tang and Ling Tang, and conducting a forensic audit of AppLovin's advertising revenue sources [19].