AppLovin, a prominent advertising technology company, is facing serious allegations of being involved in a transnational money laundering scheme, according to a report by investigative firm Capitalwatch. The report accuses AppLovin of facilitating money laundering for Southeast Asian criminal networks, with key figures including major shareholder Hao Tang and Cambodian businessman Chen Zhi allegedly involved. The report claims that AppLovin's advertising platform was used to convert illicit funds into legitimate income through excessive advertising expenditures by Cambodia's WOWNOW app. These funds were reportedly funneled through shell companies linked to the Crown Prince Group, with AppLovin recognizing the income as legitimate revenue. Following the report's release, AppLovin's stock fell 4.8% in pre-market trading, adding to a 15% decline over the previous three sessions. AppLovin CEO Adam Foroughi has denied the allegations, labeling them as false and misleading. The company is conducting an independent investigation into the claims. The U.S. SEC is also reportedly investigating AppLovin's data practices, which may overlap with the allegations. The situation remains fluid as investors and regulators scrutinize the company's operations and shareholder structure.