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Jack Dorsey’s Block (SQ) Crashes 20% After Hindenburg Report

Jack Dorsey's Block (SQ) Crashes 20% After Hindenburg Report

On Thursday morning, shares of Jack Dorsey’s Block (SQ) dropped by 20% after a prominent short-seller named Hindenburg Research announced their findings of suspicious fraudulent activities in the company’s operations. They also publicly revealed their short position against the payments firm which runs the famous Cash app.

Hindenburg Attacks Jack Dorsey’s Block

Hindenburg Research, a notorious yet reputable short seller, has set its eyes on Twitter founder Jack Dorsey and his firm Block (SQ). Dorsey, who is said to have a net worth of close to $5 billion, acts as the chief operating officer and spearheads Block’s noteworthy products including Square, Cash App, Tidal and Spiral.

Read More: Hindenburg Research Exposes Jack Dorsey’s Block Inc

Following the release of the report, the share price of Block fell by 20%, reaching $57.85 in premarket trading. The firm may experience its biggest percentage decline since March 2020 if losses continue throughout today’s trading session. Market experts anticipate a further decline of 40-50% over the coming days if Block fails to any viable positive statements surrounding the accusations.

Hindenburg Alleges Multiple Frauds

This comes after the recent attack on one of Asia’s richest man, Goutam Adani and his Adani enterprise. Hindenburg added that Block “obfuscates” the number of people who are using the Cash App platform by reporting deceptive “transacting active” metrics that are stuffed with phony and duplicate accounts.

According to the report, the short seller put the theory to the test by creating accounts in the names of former President Donald Trump and Tesla CEO Elon Musk. The short seller also created an account for a Cash App card — referred to as the Cash Card — under the blatantly fake Donald Trump account which subsequently got approved.

Moreover, the report suggests that during the pandemic, co-founders Jack Dorsey and James McKelvey sold a combined total of almost $1 billion worth of shares of the company as the share price skyrocketed.

Also Read: Coinbase CEO Brian Armstrong, CLO Grewal Sold COIN Stocks Ahead Of US SEC Action



Pratik has been a crypto evangelist since 2016 & been through almost all that crypto has to offer. Be it the ICO boom, bear markets of 2018, Bitcoin halving to till now – he has seen it all.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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