Hindenburg Research, the small investment firm whose critical investigative reports pummeled shares in an Indian industrial conglomerate and an electric-vehicle start-up, has found its newest target: Jack Dorsey’s financial technology company, Block.
Hindenburg published a 17,600-word report on Thursday accusing Block of overstating its user base and failing to stamp out fraud and illegal activity on its platforms — particularly Cash App, its mobile payment service.
“We think Block has misled investors on key metrics, and embraced predatory offerings and compliance worst practices in order to fuel growth and profit from facilitation of fraud against consumers and the government,” Hindenburg wrote in its report.
Source: Short Seller Accuses Jack Dorsey’s Block of Facilitating Fraud – The New York Times
