Say, Jack Dorsey-led company’s stock plunged eighteen percent
After Adani Group, short seller Hindenburg Research on Thursday said it has shorted shares of Block Inc (formerly known as Square Inc). The research firm said it has a short position in shares of payments company Block, led by Jack Dorsey. Hindenburg Research has said in its report that the block company has shown that the number of its users has increased while the cost incurred on the customer has been reduced. After Hindenburg’s report, Bloc shares tumbled as much as eighteen percent in premarket trade.
The report says that a two-year investigation found that the bloc systematically took advantage of the demographics it claims to have helped. The main magic behind Block’s business was not disruptive innovation, but the intent to defraud consumers and governments. Not only this, it has been shown to evade regulation, dress up predatory loans, revolutionary technology, mislead investors and manipulate metrics. It also includes former employees, partners and businessmen, according to the Hindenburg Report. It also reviewed public records containing regulatory and litigation records as well as FOIA and requests. Hindenburg said in the report that Jack Dorsey had built a $5 billion empire and also accused the company that Dorsey and the company’s top executives had sold $1 billion worth of stock. Also let you know that Jack Dorsey is also the co-founder and CEO of Twitter. Of course, Block Inc is a multi-billion dollar market cap company that claims to develop magical financial technology aimed at empowering the unbanked and underbanked, the report said.
NEW FROM US:
Block—How Inflated User Metrics and "Frictionless" Fraud Facilitation Enabled Insiders To Cash Out Over $1 Billionhttps://t.co/pScGE5QMnX $SQ
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— Hindenburg Research (@HindenburgRes) March 23, 2023
Earlier on January 24, 2023 Hindenburg Research shorted the Adani Group stock. The research report also accused the Adani Group of stock manipulation and accounting fraud, following which the group’s shares in the stockmarket were washed away. After Hindenburg’s research report, the market cap of 10 companies of the Adani Group listed on the stock exchange has decreased from 19 lakh crore to 7 lakh crore.
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