Shares of Nuvei (NVEI), a maker of payment systems, could face as much as 50% long-term downside in part because of its connection with fallen crypto exchange FTX, Spruce Point Capital Management wrote 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.

“If true, Nuvei failed to transparently disclose its full interest while announcing an FTX partnership that facilitated the movement of funds into FTX,” the report stated.

Nuvei shares fell 6% in the immediate aftermath of the report’s release, but had rebounded into positive territory at press time.

Spruce Point also pointed out that Nuvei hired FTX’s former global head of payments, Adam Cole, as a senior vice president. Cole “advised multiple defunct companies with ties to known stock promoters with a list of unsavory allegations,” claimed the report.

A representative for Nuvei didn't immediately respond to a request for comment.

Nuvei booked $19.2 million in crypto-related revenue in the fourth quarter of 2022, down 58% from the fourth quarter a year earlier.

A Nuvei spokesperson responded to CoinDesk: "Short reports have become increasingly commonplace in the public equity markets We will not comment or respond further to any point of view issued by the authors of the report. We’re staying focused on execution and on continuing to deliver strong performance for customers, partners and shareholders. We’re really excited about the opportunities we’re pursuing across the diversified set of verticals and geographies that we’re operating in today and into the future."

Updated (April 19, 2023, 15:42 UTC): Adds response from Nuvei.