🚨 Digital Brands Group Targets Clearinghouses and Prime Brokers Over FTD and Trading Anomalies
July 13, 2026
Source: Business Wire — Digital Brands Group announcement
Digital Brands Group (NASDAQ: DBGI) announced that it intends to submit compliance demands to clearinghouses and prime brokers as part of its investigation into potential naked short selling and other market manipulation.
The company says its forensic review is examining persistent failures-to-deliver, clearance and settlement imbalances, and unusual trading volume, including suspected ex-clearing and cross-border settlement activity involving its U.S. and Frankfurt listings.
Why it matters:
The announcement moves the company’s effort toward the clearing and settlement layer of the market — where records may potentially establish what happened to trades after execution and whether settlement obligations were fulfilled. The allegations have not been adjudicated.
Update — August 5, 2026: Digital Brands Group subsequently announced that it had received an unsolicited $77.58-per-share all-cash acquisition proposal. NakedShortStop™ is tracking the proposal alongside the company’s previously announced efforts concerning failures-to-deliver and settlement anomalies.
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