November 22, 2024 13:49 (IST)
Follow us:
facebook-white sharing button
twitter-white sharing button
instagram-white sharing button
youtube-white sharing button
PM Modi bestowed Dominica's highest award at India-CARICOM Summit | 69-year-old Delhi man, a St. Stephen's alumnus, arrested for conning govt officers by posing as ex-IPS | 'Baseless': Adani Group denies US charges of bribery and fraud against Gautam Adani | AAP's first list of candidates for Delhi polls feature six turncoats | PM Modi is incapable to arrest Gautam Adani: Rahul Gandhi after tycoon charged with bribery and fraud in the US
Jack Dorsey founded Block is the latest target of Hindenburg research report
Jack Dorsey
image credit: Wallpaper Cave

Jack Dorsey founded Block is the latest target of Hindenburg research report

| @indiablooms | 24 Mar 2023, 12:34 am

New York/IBNS: Hindenburg Research, a US investment group, launched a fresh attack against Block, the mobile payments company founded by Jack Dorsey, accusing it of "widely overstating" its user base, on Monday.

This came two months after the group accused Adani Enterprises of fraud. The publication of the report caused Block's stock to plummet by up to 22% in early trading on Wall Street, though it later recovered somewhat.

As of now, Block's shares are being traded at $62.27, indicating a decrease of 14.29% from its previous value. The stock's value plummeted to the day's low of $56.50, causing an overall decline of 22.22% on the exchange.

Block's stock price was at $72.65 on the preceding day.

Formerly known as Square, Block is a tech company established by ex-Twitter CEO Jack Dorsey in 2009. Its operations involve facilitating financial transactions, including payments between individuals and merchants.

Hindenburg Research alleged that while Cash App's platform was processing billions of dollars in fraudulent transactions, insiders at Block were selling off their stocks worth over $1 billion between March 2020 (the onset of the pandemic) and December 31, 2021.

According to Hindenburg Research, the investigation of Block lasted for two years and involved numerous interviews with former employees and experts. The research group also carried out a thorough examination of documents from regulators and court proceedings.

The company's mobile app, Cash App, has contributed to its rapid growth, which propelled it to a market value exceeding $100 billion in 2021. Currently, Block's market value is valued at $38 billion.

Support Our Journalism

We cannot do without you.. your contribution supports unbiased journalism

IBNS is not driven by any ism- not wokeism, not racism, not skewed secularism, not hyper right-wing or left liberal ideals, nor by any hardline religious beliefs or hyper nationalism. We want to serve you good old objective news, as they are. We do not judge or preach. We let people decide for themselves. We only try to present factual and well-sourced news.

Support objective journalism for a small contribution.