10:40 AM EDT, 03/12/2025 (MT Newswires) -- XP's (XP) sales of certain derivatives misrepresent profits by funneling money through specific funds like a Ponzi scheme, short-seller Grizzly Research alleged in a report Wednesday.

XP aggressively sells structured investment products called Certificados de Operacoes Estruturadas to retail clients and its profits rely on continuously selling these products to fund payouts, Grizzly alleged.

Gladius operates under a complex and opaque structure, making it difficult to scrutinize and, given XP's reliance on these allegedly questionable profits, investors and regulators are urged to investigate, the firm added.

As with most short-seller 'reports,' Grizzly notes up front 'this report and all statements contained herein are the opinions of Grizzly Research LLC and are not statements of fact.'

XP did not immediately respond to MT Newswires' request for comment.

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