Legendary investor Carl Icahn suffered a $10 billion loss in his fortune following a report by Hindenburg Research, which accused Icahn Enterprises of using inflated asset valuations and having “Ponzi-like” economic structures. Hindenburg also claimed that Icahn Enterprises used money from new investors to pay out dividends to old investors. As a result, the company’s shares closed 20% lower at $40.36. Icahn’s wealth derives from an 89% stake in Icahn Enterprises.
Bloomberg’s Billionaires Index estimates his net worth at $14.6 billion, a decrease of 41% from the previous day. Icahn Enterprises responded to the allegations, calling Hindenburg’s report “self-serving” and intended to generate profits on its short position. This is the third time Hindenburg has targeted public figures this year, after accusing India’s Adani Group of accounting fraud and payments company Block of misleading investors.
