Fintech business Block may be linked to criminal activity, accusers say
According to Hindenburg Research, Jack Dorsey's Block company may be involved in fraud
Hindenburg Research is well-known for short-selling companies that it believes are involved with fraud or some form of criminal activity. After causing mayhem with revelations about the Adani Group, it now has its focus on Block, a fintech company with Jack Dorsey as CEO. Do you perhaps remember that name?
For those of you who don’t follow social media trivia, Jack Dorsey was once CEO of Twitter. Now at the helm of Block, Hindenburg Research has alleged in a report that the company misled interested investors by inflating numbers. It’s also accused of creating duplicate accounts to show how popular the fintech company is to acquire funds.
Block has since issued a statement following the allegation:
“We are a highly regulated public company with regular disclosures, and are confident in our products, reporting, compliance programs, and controls. We will not be distracted by typical short-seller tactics.”
This sounds familiar to me as a Formula 1 fan. Last year, other constructor teams accused Red Bull of exceeding the approved cost cap for the year, which the team bosses denied. They also accused the competitors of using tactics to prevent them from becoming the constructor’s champions for 2022. Sadly, it was discovered that the allegations were true, even if the cost went over due to the impact of conferences, lunches, and other meals.
I digress. To make matters worse for the former Twitter CEO, Hindenburg Research says that the Cash App run by the same company is a playing field for criminal activity. It states that the Block owners aren’t supervising the transactions enough, which means criminals get away with fraudulent activities.
For now, we’ll have to wait and see what will come of these claims.Advertisement