Hindenburg Research has accused Block Inc, a payments firm chaired by Jack Dorsey, co-founder of Twitter, of overstating its genuine user counts and understating its customer acquisition costs. The US short seller, which held short positions in Block, claimed that the company had engaged in "frictionless" fraud and inflated user metrics, enabling insiders to cash out over $1 billion. Hindenburg further stated that Block had "systematically taken advantage of the demographics it claims to be helping". Block's shares declined by 20% to $58.35 in US markets following the report. Hindenburg also accused the company of obfuscating its true financial performance. Hindenburg Research, a prominent short-selling firm, has recently published a report that is critical of Jack Dorsey's payments company, Block. In the report, Hindenburg accuses Block of engaging in a number of deceptive practices and exaggerating ...
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