Carson Block, founder of Muddy Waters Research, reiterated his bearish stance on SoFi Technologies. Block stated SoFi remains a compelling short idea. He cited its accounting practices, specifically its loan valuation methods, which he suggested operate in a legal gray area.
Block's comments follow a detailed short report Muddy Waters published in March 2026. The report accused SoFi of being a “financial engineering treadmill” and using “Enron-esque off-balance-sheet structures” to inflate performance. SoFi previously denied these claims. The company stated its accounting complies with GAAP and SEC standards. SoFi also asserted the short report showed a fundamental misunderstanding of its business.