Jack Dorsey's Block tumbles after claims of Cash App fake accounts

Original source (on modern site) | Article images: [1]

Jack Dorsey's Block, the online payments business, has come under attack from the short-seller whose allegations knocked billions of dollars from the valuation of India's Adani Group.

Shares in Block tumbled after Hindenburg Research accused the group of exaggerating user numbers and facilitating fraud as part of a "Wild West" approach to compliance.

Block dismissed Hindenburg's 17,000-word report as "factually inaccurate and misleading", suggesting it was designed to "deceive and confuse" shareholders, and vowed to explore legal action.

Hindenburg's short position in Block follows its high-profile campaign against Adani Group, which triggered a $100 billion rout for the Indian conglomerate. In 2020, the New York-based firm also launched an attack on Nikola, an electric truck maker, whose founder Trevor Milton was convicted of fraud