Defi Technologies flags share ownership imbalances

Executive Summary

• Defi Technologies Inc. has escalated its ongoing investigation into share ownership and depository imbalances, citing persistent and disproportionate discrepancies between beneficial owner reports and depository records (DTC and CDS).
• The company is actively engaging with market participants and proxy servicing firms to reconcile these differences, with a stated intent to escalate the matter if satisfactory resolutions are not provided.
• This update follows an initiative launched in June 2025 in collaboration with Shareholder Intelligence Services LLC (ShareIntel) and Urvin Consulting LLC to enhance market transparency and protect shareholder interests.

Key Details

• Initiative Partners: The shareholder intelligence initiative is conducted in collaboration with Shareholder Intelligence Services LLC (ShareIntel) and Urvin Consulting LLC.
• Scope of Monitoring: The company monitors both market and non-market activity related to its common shares across all listed marketplaces and among financial institutions holding or trading the shares.
• Identified Issues: Preliminary findings indicate notable imbalances between shares reported for beneficial owners by proxy servicing firms and shares recorded at depositories, specifically the Depository Trust Company (DTC) and the Canadian Depository for Securities (CDS).
• Nature of Discrepancies: While minor discrepancies are normal, Defi Technologies observed "disproportionate and persistent differences" over selected periods that warrant further investigation.
• Company Action: Defi Technologies has contacted involved parties to request reconciliations and explanations. The company is prepared to escalate the matter if satisfactory resolutions are not provided.
• Strategic Rationale: CEO Olivier Roussy Newton stated that the company views vigilance in monitoring trading and settlement data as critical for safeguarding the integrity of trading across all venues and protecting investors from potential irregularities.

Notable Quotes

• "As fiduciaries for our shareholders, we are obligated to safeguard the integrity of the trading of the company's common shares across all trading venues," said Olivier Roussy Newton, chief executive officer of Defi Technologies. "These findings underscore why we engaged ShareIntel and Urvin -- to detect, investigate and address potential irregularities that may impact our investors. We will pursue answers and, if necessary, escalate the matter."