Muddy Waters short FTAI, says could be violating U.S. sanctions against Iran

In a recently published report, Muddy Waters Research says it is short FTAI Aviation (FTAI) and that the company could be violating U.S. sanctions against Iran. “In apparent violation of U.S. sanctions, an Iranian entity seems to have acquired FTAI product.” Citing “evidence published on LinkedIn in January and February 2025 by an Iranian airline executive of Sorena Turbine, an aircraft MRO based in Iran,” Muddy Waters says that the “online posts clearly show two CFM-56 engines and FTAI packaging adjacent to the engines at the shop. It therefore seems that Sorena has obtained product from FTAI’s Aerospace Products business. This seemingly violates U.S. OFAC sanctions for which we understand the U.S. seller would be strictly liable. The severity of the punishment, which in serious cases can include prison time depends on the culpability of the seller and frequency of violations. We have no view at this time as to either factor.” “It’s unclear to us whether this was a one-off or part of a pattern of widespread prohibited conduct. To the extent it’s more towards the latter, this would raise serious questions overall about FTAI’s culture and business. Considering that FTAI personnel are potentially exposed to prison sentences, the company should thoroughly investigate to what extent its business is connected to Iranian purchasers,” it added.