Sept 10 (Reuters) - Famed U.S. short seller Carson Block, head of research firm Muddy Waters LLC, is shorting Chinese online lottery platform 500.com, Block said on Wednesday.
Block, who has exposed accounting problems at a slew of Chinese companies, said the lottery company had some “red flags,” including an uncertain regulatory environment. He spoke on the sidelines at a public event at Baruch College on Wednesday.
“We’re short it,” Block said. “As we termed it, it’s in a legally somewhat gray area because the licensing regime is not clear, is not finalized.”
Block first said he was shorting the stock at a conference earlier in the week as well, though that conference was not public. (Reporting By Luciana Lopez; Editing by Cynthia Osterman)