The completion of a five-year investigation by the U.S. Securities and Exchange Commission (SEC) will allow Freedom Holding Corp. to access new international funding markets and accelerate the acquisition of financial licenses in the U.S. and the European Union, according to the holding company’s CEO Timur Turlov. He made the statement while commenting on the receipt of a Wells Notice and the release of the audited financial report for fiscal year 2026.
As Turlov noted, the investigation began following attacks by short-sellers and the regulator had no choice but to review everything.
«It may sound a bit scary, so let me explain this. This is not an indictment or a sentence. It’s something like an inspection report; almost every inspection ends with one. The company can now communicate its position to the regulator before it makes a final decision. In most cases, some form of penalty follows and a new chapter begins,» the businessman said.
According to the Freedom Holding Corp. CEO, companies such as Tesla, Goldman Sachs and JPMorgan have also received similar notices over the years. More than 450 companies received them last year alone.
«The SEC had questions about the internalization of transactions. These are essentially over-the-counter trades between clients or market makers, executed by the broker within its own clearing system. It sounds complicated, but it’s quite common for brokers in both the U.S. and Europe. Deloitte separately re-examined all of these transactions and confirmed that we recognized revenue correctly. We have already conveyed this position to the regulator and are calmly awaiting the final decision. Our team of lawyers and auditors is strong, so we have no concerns. Once the review is completed, it will open a direct path for us to access capital and obtain financial licenses in the U.S. and Europe,» Turlov emphasized.
On Aug. 15, 2023, Hindenburg Research, a former U.S. investment firm focused on activist short-selling, published a report accusing Freedom Holding Corp. of evading sanctions, concealing ties to Russian businesses after their sale, misrepresenting financial statements and committing other violations. At the time, Hindenburg disclosed a short position in FRHC shares, hoping to profit from a decline in the company’s share price.
Freedom Holding and Timur Turlov denied all allegations, claiming the report contained inaccurate and misinterpreted information. Despite the initial blow from the report, FRHC shares quickly recovered and later reached new all-time highs. In January 2024, the company announced that an independent audit by international consultants found no evidence to support the main allegations outlined in Hindenburg’s report.
Meanwhile, the SEC has completed its investigation into Freedom Holding Corp. According to the company’s financial statements, in March 2026, the regulator sent a Wells Notice to the holding company, its main shareholder and its CEO, Timur Turlov. The document reflects the SEC’s preliminary position and indicates that it is considering initiating civil proceedings. Freedom Holding expressed its disagreement with the SEC’s findings and submitted an official response outlining its objections.
According to the recently published annual report of Freedom Holding Corp., its revenue has increased more than 26-fold since its listing on Nasdaq, reaching $2.19 billion. Net profit doubled in fiscal year 2026 compared with the previous year, rising from $76.2 million to $153.3 million.
