US company on Hindenburg's target after Adani

US company on Hindenburg's target after Adani: Jack Dorsey's Block Inc's allegations of fraud, company's stock fell 20%

Mar 23, 2023 - 23:03
US company on Hindenburg's target after Adani

After Adani Group, US short-seller Hindenburg Research has now released a report on Thursday (March 23) against US company 'Block Inc'. Hindenburg has alleged in this report that former Twitter CEO Jack Dorsey's mobile payment company Block Inc has committed fraud against its consumers and governments.
Hindenburg said, 'Our 2-year investigation has resulted in the areas (demographics) in which Block Inc. claims to help people, the company systematically took advantage of those people. Is. Block Inc has also exaggerated the number of its users. Also, the company has significantly reduced the cost of adding new customers.
Hindenburg said it held a short position in Block Inc., betting on a decline in the company's stock. Shortly after this report came out, the stock of Block Inc. has seen a decline of about 20%.

Hindenburg's 5 allegations on Jack Dorsey's firm: -
1. The top management of the block earned more than $1 billion through insider trading between March-2020 and December-2021.
2. The company cheated through predatory loans claiming to help and taking advantage of vulnerable people.
3. Hindenburg claims that the share price of Block Inc. is 65-75% higher than the original price.
4. Exaggerated the number of users. Also told to reduce the cost of adding new customers by a lot.
5. Block's Cash app was used for sex trafficking. This also includes the sex trafficking of minors.

Block Inc was founded in 2009 by Jack Dorsey. The company provides payment and mobile banking services to merchants and consumers. This company was earlier known as Square. Block Inc's market cap is $ 44 billion i.e. Rs 3.61 lakh crore.

Muskan Kumawat Journalist & Writer