(Bloomberg) -- Uruguay’s first tech unicorn, Dlocal, tapped co-founder Sergio Fogel to take on an expanded management role as part of a push to help regain investor confidence and stabilize the company’s stock after it tumbled following a probe in Argentina and a short seller attack.

Fogel’s appointment as co-president and chief strategy officer formalizes a role he had already been carrying out jointly with Chief Executive Officer Sebastian Kanovich and Chief Operating Officer Jacobo Singer, Fogel told Bloomberg News. 

“We felt it was best for the company for me to be closer and bring a bit of gray hair to management as a reassurance to customers and investors,” Fogel, 59, said in a telephone interview from New York City. He owns about 18% of the company.

Dlocal, which provides payments services for businesses in 40 emerging markets, doesn’t plan additional senior management changes in the near term, said Fogel, who will continue to serve on the board of directors.

Uruguayan tech entrepreneurs Fogel and Andres Bzurovski were part of the group of investors that founded DLocal in 2016. Dlocal was briefly worth more than $20 billion less than three months after it listed on Nasdaq in June 2021. However, a broad sell off in tech shares and allegations of irregularities by short seller Muddy Waters contributed to a drop in its valuation to about $3 billion by November 2022.

Read more: Muddy Waters’ Block Sends Latest Short Target DLocal Sliding 40%

The stock approached fresh lows after Dlocal said in a filing that an Argentine prosecutor had started a probe into its operations following a report that it allegedly broke local capital control rules. The company has denied any wrongdoing.  

Dlocal shares closed 5.3% higher at $10.50 Wednesday, trimming their year-to-date loss to 33%.

Some of Dlocal’s top shareholders have stepped in to buy shares on the open market since December. Private equity firm General Atlantic bought about $100 million and Fogel, Bzurovski and Eduardo Azar purchased roughly $60 million, according to a company statement. The company also has an ongoing $100 million share buyback program.

Fogel didn’t rule out more support for the stock from shareholders or the company.

(Adds Argentine probe in sixth paragraph, updates share price and stock purchases starting in paragraph seven)

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