Responding to Short Selling Allegations: A Detailed Overview of KYC, Tax Compliance, and Risk Control Systems of Leading App Advertising Platforms

【CryptoWorld】On January 22, AppLovin, an application advertising platform, issued a formal response to the allegations made by the previously mentioned short-selling institutions, systematically refuting all claims in the report.

The core stance is clear: The report is filled with false and misleading accusations that do not stand up to scrutiny. As a publicly listed company, AppLovin’s stock is freely traded on the open market, and the company itself cannot control the buying and selling actions of any individual or institution. The logic is straightforward—this is how publicly traded companies operate.

Regarding platform governance, AppLovin emphasized its strict standards. They conduct multi-layered reviews of advertisers and developers, including KYC (Know Your Customer) and tax compliance verification, combining automated systems with manual audits. The platform explicitly prohibits illegal and sensitive content, including gambling products, and takes removal measures against violators.

Concerning the accusation of “assisting money laundering,” AppLovin countered from an economic perspective: advertisers can only earn a portion of the ad spend revenue, which means any money laundering attempt would incur significant losses and leave clear, auditable transaction records across multiple independent companies. From this perspective, the accusation essentially suggests that the entire mobile advertising ecosystem has systemic failures—but the short-selling report fails to provide any credible evidence.

The ecosystem in which AppLovin operates is actually quite mature: mainstream app stores, operating systems, and payment service providers form a comprehensive regulatory framework. Apps monetized through this platform must be publicly listed in major stores and undergo independent review and regulation. This multi-party constraint structure itself ensures compliance.

The platform emphasizes that it consistently operates a highly compliant and transparent advertising ecosystem, adhering to strict financial compliance standards. The publicly disclosed documents have already fully detailed major investments, global business operations, and key shareholders.