Source: Bloomberg Billionaires Index
Twitter co-founder Jack Dorsey’s net worth plunged by more than $526 million in a single day after US-based Hindenburg Research released a report on his payments company Block Inc
Source: Bloomberg Billionaires Index
Jack Dorsey’s net worth stood at $4.4 billion, according to Bloomberg Billionaires Index. The 11% or $526 million drop in his fortunes is his worst single-day decline since May
The Nathan Anderson-backed Hindenburg has alleged that Jack Dorsey-founded Block Inc was willing to “facilitate fraud against consumers and the government, avoid regulation, dress up predatory loans and fees as revolutionary technology, and mislead investors with inflated metrics”
Shares of Jack Dorsey’s Block Inc plunged around 15% after Hindenburg Research announced that the payment company was its latest short position, alleging that Block allowed criminal activity to operate with lax controls and “highly” inflated Cash App’s transacting user base, a key metric of performance
Hindenburg described Block’s internal systems as a “Wild West approach to compliance.” It said, “Our 2-year investigation has concluded that Block has systematically taken advantage of the demographics it claims to be helping.” The research firm added that Block’s Cash App thrived on serving “unbanked” customers
Block Inc responded to the Hindenburg report, saying, “We intend to work with the SEC and explore legal action against Hindenburg Research for the factually inaccurate and misleading report they shared about our Cash App business today."
“We are a highly regulated public company with regular disclosures, and are confident in our products, reporting, compliance programs, and controls. We will not be distracted by typical short seller tactics,” Block said in its press release
The US-based Hindenburg Research on January 24, 2023, levelled allegations of stock manipulation, accounting fraud and other financial misdeeds on Adani Group. The Gautam Adani-led conglomerate denied all the allegations
Hindenburg's damning report titled 'Adani Group: How The World’s 3rd Richest Man Is Pulling The Largest Con In Corporate History' wiped out around $150 billion from the group’s market value in 5 weeks since publication