Hindenburg’s Latest Report Scraped Away Jack Dorsey’s $526M, Shares Down By 22%

As reported by a Bloomberg article, Block’s co-founder Jack Dorsey‘s total wealth decreased by $526 million off Thursday, despite the US-based Hindenburg Research’s newest research accusing Block of ignoring massive fraud. As per the report, the $526 million drop is the largest one-day drop since May 2022. Following the 11% decline, Dorsey’s net worth is now $4.4 on the Bloomberg Billionaires Index.

On Thursday, Hindenburg Study discovered risky assets in Block Inc. and said that the transactions run by Jack Dorsey, the co-founder of Twitter had exaggerated the number of users it had an understated the expense of acquiring new clients. Block promised to respond, announcing that it would consider filing a complaint against the short seller for its “factually false and deceptive material” that was ” designed to confuse and mislead investors.”

The payments company stated that Hindenburg was well-known for these attacks, which were created specifically to let short sellers profit from a falling stock price. It also stated that it would cooperate with the U.S. Securities and Exchange Commission. The report is released at a time when concerns about the robustness of consumer expenditure in the face of inflationary pressures and prospects of an economic slowdown have clouded the picture for the financial sector.

The company promotes Cash App as a replacement for traditional financial services and provides consumers the ability to send and receive money using a smartphone app.

Before Jack Dorsey, Gautam Adani Faced Consequences

This is not the first time Nathan Anderson’s company, Hindenburg, has targeted millionaires and reduced their wealth. Previously this year, the company published an examination into Indian businessman Gautam Adani and his empire, which sent his firms’ stocks tumbling and destroyed tens of billions of dollars worth of his wealth. With a $60.1 billion fortune, Adani, who was formerly the second-richest person in the world, is currently ranked 21st on Bloomberg’s wealth index.