CapitalWatch published a report alleging the company's advertising platform may have been used to facilitate money laundering tied to criminal networks in Southeast Asia. The report also raises questions about AppLovin's shareholder structure and its disclosures around ownership and compliance controls.
The report alleges that primary shareholder Hao Tang's wealth includes about $957 million in illicit proceeds linked to the collapse of China's P2P platform Tuandai.com, as well as about $2.15 billion in gambling-related funds.
It further claims AppLovin's Array platform and AXON algorithm functioned as digital weapons for Prince Group to distribute illegal gambling and pig butchering scam activity.
The report also alleges AppLovin made misleading statements in SEC disclosures about its China ties, claiming the company maintained an operations team of over 15 people in mainland China and transferred US user data without proper supervision.
While the claims have not been proven and AppLovin has not yet publicly responded to the report, the episode adds a new layer of uncertainty around the company as markets assess the likelihood of regulatory follow-up and management's response.
