Hindenburg New Target Jack Dorsey

Short seller Hindenburg Research has released a report targeting Block Inc., a payments company founded by former Twitter CEO Jack Dorsey.

[{"selector":"#anim-8c1de9b5-7ad3-4625-b46a-ae6a872e6901","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-6e5c87cd-55a2-43e5-bc59-916ab1d06452","keyframes":{"transform":["translate3d(0px, 132.72948%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] source:Google

The report claims that Block's success is not due to disruptive innovation, but rather its willingness to facilitate fraud against consumers and the government, avoid regulation, and mislead investors.

[{"selector":"#anim-a1836dbb-5d03-47c4-b03d-324b59333ec2","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-53397797-53d2-4de0-85f5-9c952d554696","keyframes":{"transform":["translate3d(0px, 137.84066%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] source:Google

The Cash App platform, which many analysts are excited about, has allegedly been overrun with scam accounts and fake users, according to the report.

[{"selector":"#anim-9593b80e-758a-4dc1-8f51-f651cb7db34a","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-191694f6-a0db-4e1a-8ba2-5b76735f498f","keyframes":{"transform":["translate3d(0px, 158.04093%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] source:Google

During the Covid-19 pandemic, the Cash App facilitated a massive wave of government Covid-relief payments, with the report alleging that compliance lapses made fraud easy.

[{"selector":"#anim-0439d817-6439-4d61-9a5e-adcdc8c84bce","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-759bed0f-018b-4591-b9a1-9a4a15d78f78","keyframes":{"transform":["translate3d(0px, 147.40339%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] source:Google

Block's reported surge in user counts and revenue during the pandemic has been attributed to widespread fraudulent accounts and payments, and co-founders Dorsey and James McKelvey sold over $1 billion of stock during this time.

[{"selector":"#anim-8d096f14-6674-4ba5-86af-0be9fdccf9c4","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-af3b2f71-b6cb-4a2b-9cd2-1f2dddaea00d","keyframes":{"transform":["translate3d(0px, 124.27142%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] source:Google

Block Inc, originally named Square, started operations in 2009.

[{"selector":"#anim-412f8620-d5b0-46c9-8971-15aec06f6eb6","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-9ab5dede-6842-4a14-ab72-ce1fc851f921","keyframes":{"transform":["translate3d(0px, 189.48629%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] source:Google