The story
Founded by Carson Block.1
History
Muddy Waters Research was founded in 2010 by Carson Block. In January 2016, Block launched Muddy Waters Capital LLC, an SEC‑registered investment adviser, to manage capital alongside the firm’s research activities.
The company is named after the Chinese proverb "muddy waters makes it easy to catch fish" (渾水摸魚). In January 2015, the firm raised an initial $100 million for its investment strategy.
As of 2025, SEC filings list the firm’s principal office in Austin, Texas.
Sino-Forest (2011-2012)
Muddy Waters gained notability in 2011 following the release of a negative research report on Sino-Forest Corp, in which Muddy Waters alleged that the company was fraudulently inflating its assets and earnings hence, making the company's shares worthless. Muddy Waters declared that the Sino-Forest was a "multi-billion dollar ponzi scheme". As a result, shares of Sino-Forest fell by 82% following Muddy Waters report, forcing prominent investor John Paulson to sell his entire stake at a $US720 million loss. Sino-Forest dismissed Muddy Waters allegations of fraud and launched an independent investigation for PricewaterhouseCoopers to oversee. On March 30, 2012, Sino-Forest filed for bankruptcy protection in Canada under the Companies' Creditors Arrangement Act.
From Wikipedia’s article on Muddy Waters Research, shared under CC BY-SA 4.0.4