HSBC Raised Fraud Alarm Leading to Collapse of Fintech Stenn (1)

A finance firm backed by several influential Wall Street investors collapsed last week after HSBC Holdings Plc discovered some of the company’s transactions may have been fraudulent.

The UK operating companies of Stenn Technologies, which said it was valued at $900 million in 2022, were placed into administration on Dec. 4. The filing came after a unit of HSBC became concerned about potential irregularities it discovered in some of the firm’s transactions, according to people familiar with the matter, who asked not to be identified while discussing non-public issues.

Stenn’s founder and chief executive officer, Greg Karpovsky, left ...