Today’s 10 Worst-Performing Stocks

6. XP Inc. (NASDAQ:XP)

XP retreated for a third day on Wednesday, losing 5.48 percent to end at $14.14 each as investors sold off positions following allegations from a short seller that it was engaging in a “Madoff-like Ponzi scheme.”

A report from short seller Grizzly Research targeted XP’s financial practices, particularly the operations of its fund called GLADIUS FIM CP IE, claiming that XP’s profits largely depend on deceptive financial products sold to retail clients.

It also claimed that XP engages in a Ponzi scheme through the sale of Structured Operations Certificate which are allegedly presented as proprietary trading profits but are in reality funds from new premiums.

The research said that GLADIUS which returned more than 2,419 percent over the past five years relies on the said scheme, and that without the profits from GLADIUS and an affiliated fund, COLISEU FIM CP IE, XP would reportedly be unprofitable.

XP, meanwhile, said that it was aware of the allegations, saying that it reinforces its “unwavering commitment to transparency, regulatory compliance, and strict governance” and that it “adheres to all regulations set by regulatory bodies.”