Former Twitter CEO Jack Dorsey has had better days.
On Thursday, March 23rd, his company Block (formerly known as Square) took a tumble in the stock market, as the price of the company’s shares fell by nearly 15% – causing Dorsey’s net worth to fall by U$562 million dollars.
The sharp decline in share prices was caused by a report by Hindenburg Research “accusing the firm of misleading investors and embracing a criminal user base.”
“Hindenburg Research on Thursday disclosed its short position in Block and released findings from a two-year investigation, alleging the company ‘misled investors on key metrics, and embraced predatory offerings and compliance worst-practices in order to fuel growth.’”
The report includes expansive allegations against Block, the payments company formerly known as Square, which also owns the popular smartphone payment application Cash App.
“Many of Hindenburg’s claims center on alleged rampant criminal use of Cash App for drug deals, sex trafficking, and even murder-for-hire.”
Rapper 22Gz: ‘I paid them hitters through Cash App.’
Rapper Nuke Bizzle: convicted for COVID stimulus fraud, used Cash App as the payment mechanism. Boasted about the scheme in his lyrics.
Hindenburg Report: “Block [owner of Cash App] has embraced one traditionally very ‘underbanked’ segment of the population: criminals”.
Block responded: “We will not be distracted by typical short seller tactics.” Jack Dorsey’s net worth dropped 11 percent, but it’s still at a healthy $4.4 billion.