SoFi CEO Puts $500K Of His Own Money On The Line After Short Seller’s ‘Enron-Esque’ Accounting Claims

• SoFi shares fell to an over eight-month low on Tuesday, dropping 2% and extending losses for a second straight session.
• The short seller also questioned SoFi’s loan accounting, charge-off rates, and EBITDA, warning of potential financial restatements.
• SoFi rejected the claims as misleading, said it may pursue legal action, and reaffirmed compliance with regulatory bodies.

SoFi Technologies, Inc. (SOFI) CEO Anthony Noto scooped up shares of the fintech firm on Tuesday, stepping in after a short seller flagged “Enron-esque” accounting and alleged $312 million in hidden debt at the fintech firm, which the company denied.

SOFI stock fell to an over eight-month low on Tuesday, slipping more than 1% to $17.37 and marking a second consecutive session of declines. However, shares rose nearly 1% in extended trading. 

SoFi CEO Adds Shares After Short Call

A new regulatory filing on Tuesday showed that Noto purchased 28,900 shares of SoFi at a weighted average price of about $17 per share. The shares were acquired in multiple trades at prices ranging from $17.255 to $17.340, according to the filing. Following the transaction, Noto owned 11.7 million shares of the company.

The purchase, valued at roughly $500,516, came after Muddy Waters Research disclosed a short position and outlined concerns around SoFi’s loan accounting, off-balance-sheet structures, and reported debt levels.

Muddy Waters Targets SoFi Accounting

Muddy Waters called SoFi a “financial engineering treadmill” and alleged the company used “Enron-esque off-balance-sheet structures that disguise borrowings as revenue.” The research firm said SoFi appeared to have “a material misstatement” of at least $312 million of unrecorded debt. As of Dec. 31, 2025, SoFi’s total liabilities stood at $40.2 billion. Muddy Waters added that, if correct, it could indicate broader misstatements.

The short seller also questioned SoFi’s reported charge-off rates, fair value accounting, loan-sale treatment, and loan-platform business, and said these practices inflated adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA). It further said the company could have to restate revenue, EBITDA, assets and debt if its conclusions are found to be accurate.

Muddy Waters said in its report that it could begin covering a substantial portion of its position following publication.

SoFi Rejects Claims, Eyes Legal Action

SoFi rejected the allegations in a statement, saying the claims reflected “a fundamental lack of understanding” of its financial statements and business. The company said it intends to explore potential legal action over a “factually inaccurate and misleading report.”

The company added that its financial statements are prepared in accordance with U.S. GAAP and SEC rules and are supported by internal controls and procedures. It also noted that it is a bank holding company regulated by the Federal Reserve and operates a bank regulated by the Office of the Comptroller of the Currency.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment for SOFI surged to ‘extremely bullish’ from ‘bearish’ a day prior amid a 181% surge in message volumes over the same period.

One user said, “Love how the CEO is defending the company with speed and gloves off: (1) buys shares today (2) issues press release and seeking legal action. Makes me want to own even more of this company - as my money is in good hands with this CEO.”

One user said the report accuses regulators and auditors, including the Federal Reserve, SEC, OCC and Deloitte & Touche, of failing in oversight, and argued the allegations could warrant legal action against Muddy Waters.

SOFI stock has risen 41% over the past year, but is down 34% since January.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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