The new report published by Hindenburg Research shocked the cryptocurrency market. Jack Dorsey’s digital payments initiative in the report block The company is alleged to have committed a major fraud. A report claiming that the company knowingly aided fraud against customers and governments had a shock effect on the market. created.
Block, formerly known as Square, is a ~$44 billion market cap company that claims to have developed a “frictionless” and “magical” financial technology with a mission to empower the “unbanked” and the “underbanked”. $SQ
— Hindenburg Research (@HindenburgRes) March 23, 2023NEWS CONTINUES BELOW
Block in 2009 with Jim McKelvey and Jack Dorsey was founded by It has been listed as a public company on the New York Stock Exchange (NYSE) under the code SQ since November 2015.
“Our 2-year research has concluded that Block systematically exploits the demographic groups he claims to be helping,” Hindenburg reports. The “magic” behind the events was not disruptive innovation, but the company’s willingness to facilitate fraud against consumers and the government, avoid regulation, portray disruptive loans and fees as revolutionary technology, and mislead investors with inflated metrics.”
Following the release of the report, Block’s share price fell 20% to $57.85 in premarket trading. Analysts predict another 40-50% loss in the next few days if he fails to make a convincing defense against the allegations.
Hindenburg ResearchClaims that Cash App, founded by Dorsey, dismissed warnings and concerns from internal employees, from the Secret Service, the U.S. Department of Labor, and many government agencies.
The report alleges that the Cash app is often used for illegal purposes, citing the nonprofit Polaris Project. These allegations were refuted by Cash App, which said it refused any payments linked to illegal activities.
“There are also dozens of ‘Elon Musk’ and ‘Donald Trump’ fake accounts. A search for Cash App account holders with the name “Jack Dorsey” reveals numerous accounts, including a number of accounts with “cash tags” that could be used to mislead and defraud other users.”
You can follow the current price action here.