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XP.US
id: 1566
XP (XP): Investigation Into Ponzi-Like Fund Structure and Misleading Investment Practices
Attorneys review the case details to decide whether to proceed with a class action.
- XP executives are being investigated for using risky investment funds that looked like a Ponzi scheme to fake profits and mislead investors.
- The company is also being questioned over conflicts of interest, unclear product sales, and issues with its Gladius and Coliseu funds.
- Investors are currently investigating whether XP executives misled investors or committed fraud.
Case Details:
A March 2025 report by Grizzly Research raised major concerns about one of XP’s top-performing funds — the Gladius fund — which reportedly returned over 2,400% in five years with almost no volatility. The report called these results "mathematically impossible."
Former employees described the fund’s setup as a “Madoff-like Ponzi scheme”. This implies that the money from new investors was used to pay returns to earlier ones — rather than profits coming from actual investments.
The report also said XP tried to avoid regulatory checks by requesting an exemption from Brazil’s financial transparency rules — a request that was denied.
Additionally, XP’s core products, known as COEs (structured notes), are heavily pushed to everyday investors. These products are often complex, high-cost, and sold with little explanation of the risks.
According to the report, XP’s profits would collapse without these funds, suggesting the company is not truly profitable once these are removed.
With growing concerns about how XP manages its funds, handles its finances, and follows regulations, investors are now investigating whether XP executives misled the public or engaged in serious misconduct.
Case Status
Attorney Investigation
Alleged Offence
Mismanagement,
Financial Misrepresentation,
Fraud,
Failure to Disclose,
Omissions
Suspected Party
Directors,
Management
Security Type
Stocks
Trade Direction
Short
Shock Event Date
03/12/2025