On Thursday morning, shares of Jack Dorsey’s Block (SQ) dropped by 20% after a prominent short-seller named Hindenburg Research announced their findings of suspicious fraudulent activities in the company’s operations. They also publicly revealed their short position against the payments firm which runs the famous Cash app.
Hindenburg Attacks Jack Dorsey’s Block
Hindenburg Research, a notorious yet reputable short seller, has set its eyes on Twitter founder Jack Dorsey and his firm Block (SQ). Dorsey, who is said to have a net worth of close to $5 billion, acts as the chief operating officer and spearheads Block’s noteworthy products including Square, Cash App, Tidal and Spiral.
Read More: Hindenburg Research Exposes Jack Dorsey’s Block Inc
Following the release of the report, the share price of Block fell by 20%, reaching $57.85 in premarket trading. The firm may experience its biggest percentage decline since March 2020 if losses continue throughout today’s trading session. Market experts anticipate a further decline of 40-50% over the coming days if Block fails to any viable positive statements surrounding the accusations.
Hindenburg Alleges Multiple Frauds
This comes after the recent attack on one of Asia’s richest man, Goutam Adani and his Adani enterprise. Hindenburg added that Block “obfuscates” the number of people who are using the Cash App platform by reporting deceptive “transacting active” metrics that are stuffed with phony and duplicate accounts.
Our 2-year investigation concludes $SQ systematically exploits the demographics it claims to help. The magic behind $SQ has not been innovation, but its willingness to mislead investors, facilitate fraud, avoid regulation & dress up predatory products as revolutionary tech. (3/n)
— Hindenburg Research (@HindenburgRes) March 23, 2023
Moreover, the report suggests that during the pandemic, co-founders Jack Dorsey and James McKelvey sold a combined total of almost $1 billion worth of shares of the company as the share price skyrocketed.
Also Read: Coinbase CEO Brian Armstrong, CLO Grewal Sold COIN Stocks Ahead Of US SEC Action
The post Breaking: Jack Dorsey’s Block (SQ) Crashes 20% As Hindenburg Report Accuses Of Fraud appeared first on CoinGape.
- Mobile app
- Telegram Channel
- Telegram Group
- Binance Referral Link
- Bitmex Referral Link
- (Recommended For Leverage) ByBit Referral Link
- Buy Ledger Nano at discounted price
- Buy Cool Wallets at discounted price
Don't forget to share your review/suggestions for the android app.
All In One Crypto App is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as investment advice. Any opinion that may be provided on this page does not constitute a recommendation by All In One Crypto App or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risks