These alleged misrepresentations were brought to light on January 15, 2025, when the prominent short-selling firm Muddy Waters Research published a scathing report. The report accused FTAI of "materially manipulating its financials" through various accounting maneuvers, including those outlined above.

Further, Muddy Waters alleges that FTAI improperly depreciates engines that are not on lease, which artificially inflates its earnings before interest, taxes, depreciation, and amortization (EBITDA). Following the release of the Muddy Waters Report, FTAI's stock price plummeted by 24.3%, losing $37.21 per share on unusually heavy trading volume.

FTAI said it strongly disagrees with the report's claims, but will likely need time to review them thoroughly as it prepares audited financial statements for fiscal 2024. As a result, the filing of the annual report may be delayed, the company said. FTAI shares dropped 20% to $89.91 in premarket trading.