London Daily

Focus on the big picture.
Saturday, May 31, 2025

Hindenburg Research's Latest Report Targets Jack Dorsey's Block

Hindenburg Research's Latest Report Targets Jack Dorsey's Block

Block, founded by former Twitter boss Jack Dorsey in 2009, used to be called Square before being renamed in late 2021.
Two months after accusing Adani Enterprises of fraud, US investment group Hindenburg Research launched a new salvo on Thursday, this time against Jack Dorsey's mobile payments firm Block, saying it "widely overstated" its user base.

Following publication of the report, Block's stock tumbled up to 22 percent in early trading on Wall Street before recovering slightly.

In late January, the New York-based Hindenburg accused the conglomerate Adani of price manipulation, accounting malpractice, tax evasion and money laundering.

The allegations, denied by Adani, caused the value of its seven listed companies to plunge by tens of billions of dollars.

Block, founded by former Twitter boss Dorsey in 2009, used to be called Square before being renamed in late 2021.

The tech company operates financial transactions, ranging from payments to merchants to payments between individuals.

Block, which owns the mobile app Cash App, has been growing at a breakneck pace and surpassed $100 billion in market value in 2021. It is currently worth $38 billion.

Hindenburg said that the California-based Block knew that many of its accounts were fraudulent or belonged to the same user but failed to account for this in its financial disclosure.

It accused Block of taking a "Wild West" approach to regulatory compliance, which "made it easy for bad actors to mass-create accounts for identity fraud and other scams, then extract stolen funds quickly."

Hindenburg said it investigated Block for two years and interviewed dozens of former employees and experts, and conducted a detailed analysis of documents from regulators and court proceedings.

Block did not immediately respond to a request from AFP.
Newsletter

Related Articles

0:00
0:00
Close
Satirical Sketch Sparks Political Spouse Feud in South Korea
Indonesia Quarry Collapse Leaves Multiple Dead and Missing
South Korean Election Video Pulled Amid Misogyny Outcry
Asian Economies Shift Away from US Dollar Amid Trade Tensions
Netflix Investigates Allegations of On-Set Mistreatment in K-Drama Production
US Defence Chief Reaffirms Strong Ties with Singapore Amid Regional Tensions
Vietnam Faces Strategic Dilemma Over China's Mekong River Projects
Malaysia's First AI Preacher Sparks Debate on Islamic Principles
White House Press Secretary Criticizes Harvard Funding, Advocates for Vocational Training
France to Implement Nationwide Smoking Ban in Outdoor Spaces Frequented by Children
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
Russia's Fossil Fuel Revenues Approach €900 Billion Since Ukraine Invasion
U.S. Justice Department Reduces American Bar Association's Role in Judicial Nominations
U.S. Department of Energy Unveils 'Doudna' Supercomputer to Advance AI Research
U.S. SEC Dismisses Lawsuit Against Binance Amid Regulatory Shift
Alcohol Industry Faces Increased Scrutiny Amid Health Concerns
Italy Faces Population Decline Amid Youth Emigration
U.S. Goods Imports Plunge Nearly 20% Amid Tariff Disruptions
OpenAI Faces Competition from Cheaper AI Rivals
Foreign Tax Provision in U.S. Budget Bill Alarms Investors
Trump Accuses China of Violating Trade Agreement
Gerry Adams Wins Libel Case Against BBC
Russia Accuses Serbia of Supplying Arms to Ukraine
EU Central Bank Pushes to Replace US Dollar with Euro as World’s Main Currency
Chinese Woman Dies After Being Forced to Visit Bank Despite Critical Illness
President Trump Grants Full Pardons to Reality TV Stars Todd and Julie Chrisley
Texas Enacts App Store Accountability Act Mandating Age Verification
U.S. Health Secretary Ends Select COVID-19 Vaccine Recommendations
Vatican Calls for Sustainable Tourism in 2025 Message
Trump Warns Putin Is 'Playing with Fire' Amid Escalating Ukraine Conflict
India and Pakistan Engage Trump-Linked Lobbyists to Influence U.S. Policy
U.S. Halts New Student Visa Interviews Amid Enhanced Security Measures
Trump Administration Cancels $100 Million in Federal Contracts with Harvard
SpaceX Starship Test Flight Ends in Failure, Mars Mission Timeline Uncertain
King Charles Affirms Canadian Sovereignty Amid U.S. Statehood Pressure
Trump Threatens 25% Tariff on iPhones Amid Dispute with Apple CEO
Putin's Helicopter Reportedly Targeted by Ukrainian Drones
Liverpool Car Ramming Incident Leaves Multiple Injured
Australia Faces Immigration Debate Following Labor Party Victory
Iranian Revolutionary Guard Founder Warns Against Trusting Regime in Nuclear Talks
Macron Dismisses Viral Video of Wife's Gesture as Playful Banter
Cleveland Clinic Study Questions Effectiveness of Recent Flu Vaccine
Netanyahu Accuses Starmer of Siding with Hamas
Junior Doctors Threaten Strike Over 4% Pay Offer
Labour MPs Urge Chancellor to Tax Wealthy Over Cutting Welfare
Publication of UK Child Poverty Strategy Delayed Until Autumn
France Detains UK Fishing Vessel Amid Post-Brexit Tensions
Calls Grow to Resume Syrian Asylum Claims in UK
Nigel Farage Pledges to Reinstate Winter Fuel Payments
Boris and Carrie Johnson Welcome Daughter Poppy
×