Nuvei (NVEI) shares could face as much as 50% long-term downside in part thanks to its connection with fallen crypto exchange FTX, said Spruce Point Capital Management in a report released on Tuesday morning.

Montreal-based Nuvei partnered with FTX in December 2021 to enable ways for users to receive instant payments to buy crypto more quickly and securely.

The company may also have been an investor in the now-bankrupt crypto exchange, claimed Spruce Point, which said it spoke to a former Nuvei executive about the matter. Spruce Point further noted that Nuvei was recently listed as a creditor in FTX’s bankruptcy case.

(by Stephen Alpher)