Hindenburg Report on Block Inc Explained | Jagran Business

Jack Dorsey, a co-founder of Bloc Inc., saw a significant decline in his wealth on Thursday (March 23), losing more than $500 million after Hindenburg Research, a short-seller based in New York, claimed that Bloc Inc. overstated the number of users on its Cash App platform while understating the cost of acquiring new users.

 

After an 11% decline, Dorsey's net worth is currently $4.4 billion, according to the Bloomberg Billionaires Index. Before the New York Stock Exchange closed for the day on Thursday, Block's shares fell 15%, wiping out all of the gains gained thus far this year.

 

What are the allegations against Block?

The peer-to-peer (P2P) mobile payment programme Block's Cash App, which enables users to swiftly transmit, receive, and invest money, is the major subject of Hindenburg's research. It was introduced in 2013, according to Forbes, to compete with existing mobile payment apps like PayPal and Venmo.