Earlier this month, Reuters reported that hedge fund Muddy Waters had accused Uruguayan payments company dLocal of using client funds to pay a special dividend to its shareholders from before its June 2021 IPO.
The hedge fund said – according to Reuters – that “all (dLocal) needed to do to address this issue was provide an explanation as to how the cash flows reconcile.”
The problem of cash flow reconciliation is an increasingly large one, especially in light of the explosion of digital payments since the onset of the COVID-19 pandemic. As companies that handle customer payments expand to new markets, add new products and handle i...
