Hindenburg accuses Jack Dorsey’s Block facilitates fraud

Shares of former Twitter CEO Jack Dorsey’s fintech firm, Block, plummeted 15% Thursday following short seller Hindenburg Research report indicating that Block’s Cash App payment service facilitates fraudulent activities.

What does the report say?

The Hindenburg report alleges that Block overstated Cash App’s user numbers. A former employee revealed that 40% to 75% of the accounts they reviewed were either fake, involved in fraud, or owned by one person.

The two-year investigative report also alleges that Cash App let scams and fraudulent behavior, like paying for drugs, run amuck.

Jack Dorsey’s Block has threatened legal action against Hindenburg Research, calling the report “factually inaccurate and misleading.”

Hindenburg’s January report about Indian business mogul Gautam Adani caused Adani Group a $108 billion wipeout in market value.