Home Business New report from Hindenburg Research! ‘Block’ co-founder Jack Dorsey wealth tumbles $526 million

New report from Hindenburg Research! ‘Block’ co-founder Jack Dorsey wealth tumbles $526 million

by Trend News
3 minutes read
New report from Hindenburg Research- Jack Dorsey wealth tumbles $526 million

After the latest report of Hindenburg Research, there has been a huge decline in the wealth of Jack Dorsey, the co-founder of ‘Block Inc.’. In its report, Hindenburg accused Block that the company had misled investors. Hindenburg says that Jack Dorsey’s payment company Block helped those who took advantage of government schemes by forgery during Kovid.

After the arrival of this report, Jack Dorsey’s wealth got cleared by $ 526 million in just one day. This is the biggest loss for Dorsey in a single day since May last year. According to the Bloomberg Billionaires Index, after an 11% decline in his wealth, his total net worth is now $4.4 billion.

Hindenburg released a report on Thursday, in which he made serious allegations against the company

Allegations of Hindenburg Research

  • The company’s Cash app allowed multiple people to access government subsidies in a single account.
  • The block inflated the users metrics, that is, the number of users was greatly exaggerated.
  • Block has clearly hidden this information about how many valid users are there on its cash app.
  • The company also filled the metrics of active users with fake accounts.
  • Cash app was used by a large number of people during the epidemic.
  • The company increased its profits by ignoring some important banking regulations.

Block’s shares fell by 22%

The company denied Hindenburg Research’s allegations and said it was exploring legal action against short-sellers. Block’s share closed down 15%, although this share was broken by 22% in intraday.

Large chunk of Dorsey’s assets in ‘Block’

Dorsey, who is also the co-founder of Twitter, has most of his wealth invested in the block. The Bloomberg Wealth Index estimates that his stake in the firm is worth $3 billion, while his stake in Twitter is just $388 million.

Billionaire businessman on target of Hindenburg Research

However, this is not the first time that Nathan Anderson’s Hindenburg has chosen billionaires as its victims and has taken a direct hit at their wealth. Earlier this year, India’s Gautam Adani and his business empire were also attacked, which caused the shares of his companies to fall and his wealth lost several million dollars.

Adani, who was once the second richest person in the world, is now ranked 21st on Bloomberg’s index with a net worth of $60.1 billion. Hindenburg also targeted electric car maker Nikola Corp in September 2020. Nikola’s stock subsequently plummeted and an investigation led to a fraud conviction in October against its founder, Trevor Milton.

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