BTC NOON
  • Home
  • Cryptocurrency
  • Bitcoin
  • Ethereum
  • Blockchain
  • Regulations
  • Altcoin
  • DeFi
  • Web 3.0
No Result
View All Result
BTC NOON
No Result
View All Result
Home Business

Block Share Price Plummets After Hindenburg Fraud Accusations

Xiao Chen Sun by Xiao Chen Sun
March 26, 2023
in Business
0
Block Share Price Plummets After Hindenburg Fraud Accusations
74
SHARES
1.2k
VIEWS
Share on FacebookShare on Twitter

Jack Dorsey’s company Block saw a 20.13% drop in share price after Hindenburg Research accused it of allowing criminal activity and inflating Cash App’s user base.

You might also like

TikTok US Ban Threatens Small Businesses, Creators and Entertainment Industry

Twitter Poll Eligibility Limited to Verified Accounts From April 15, Says Musk

BAYC Owner Yuga Hosts Second Otherside Metaverse Experience

“Our 2-year investigation has concluded that Block has systematically taken advantage of the demographics it claims to be helping,” Hindenburg said in its report.

Block’s Cash App succeeded by serving customers who are “unbanked,” according to the research firm.

The share price of Block Inc. (SQ) was open at $77.5 on Wednesday on NASDAQ. On Thursday, it closed at $61.88 after rebounding from a 24-hour low of $56.5.

“Block Inc., formerly known as Square Inc., is a $44 billion market cap company that claims to have developed a “frictionless” and “magical” financial technology with a mission to empower the “unbanked” and the “underbanked,” said the report.

Hindenburg’s allegation is that those unbanked customers were involved in criminal or illicit activity.

“Beyond facilitating payments for criminal activity, the platform has been overrun with scam accounts and fake users, according to numerous interviews with former employees.”

Hindenburg Research’s comprehensive report includes internal system screenshots, employee messages, and allegations of financial misreporting.

Block denies Hindenburg claims

Responding to the claims, Dorsey’s Block denied the accusations and said it would explore legal action.

“We intend to work with the SEC and explore legal action against Hindenburg Research for the factually inaccurate and misleading report they shared about our Cash App business today,” said the company in a press release.

Hindenburg Research is known for “these types of attacks,” according to Block. Such reports “are designed solely to allow short sellers to profit from a declined stock price.

“We have reviewed the full report in the context of our own data and believe it’s designed to deceive and confuse investors,” added the firm.

Block is “a highly regulated public company with regular disclosure with confidence” and “will not be distracted by typical short seller tactics,” according to the release.

$526 million lost in a single day

In just one day, Dorsey’s wealth decreased by $526 million, reported Bloomberg.

“So Block is acting perfectly in line with the financial industry it finds itself in? Shocking,” wrote a Reddit user in response to the CNBC news.

“I didn’t want to believe-it before reading the report, which is well-researched, well-documented, thorough and eye-opening. “Say it ain’t so”, bc I’ve always liked/used Square, from day-one. But Dorsey has a lot of explaining to do,” wrote one Twitter user, Thomas C. Wynn.

Although the report may be “anecdotal and drummed up for their personal short game,” Thomas contends that “Block needs to answer point-by-point.”

The Hindenburg Research report follows a previous one on Indian conglomerate Adani Group, which lost over ₹12 lakh crore in market value.

“Today we reveal the findings of our 2-year investigation, presenting evidence that the INR 17.8 trillion (U.S. $218 billion) Indian conglomerate Adani Group has engaged in a brazen stock manipulation and accounting fraud scheme over the course of decades,” said Hindenburg at the time.

This article is originally from MetaNews.

Share30Tweet19
Xiao Chen Sun

Xiao Chen Sun

Recommended For You

TikTok US Ban Threatens Small Businesses, Creators and Entertainment Industry

by Xiao Chen Sun
March 30, 2023
0
TikTok US Ban Threatens Small Businesses, Creators and Entertainment Industry

China-owned video-sharing platform TikTok is on the verge of a nationwide ban in the United States. A possible ban will force more than 150 million users in the...

Read more

Twitter Poll Eligibility Limited to Verified Accounts From April 15, Says Musk

by Xiao Chen Sun
March 30, 2023
0
Twitter Poll Eligibility Limited to Verified Accounts From April 15, Says Musk

Twitter will be implementing a major change in its recommendation system, Elon Musk has announced. Starting from April 15, only verified accounts will be eligible to appear in...

Read more

BAYC Owner Yuga Hosts Second Otherside Metaverse Experience

by Xiao Chen Sun
March 30, 2023
0
BAYC Owner Yuga Hosts Second Otherside Metaverse Experience

This past weekend Yuga Labs, the owner of popular NFT collection Bored Ape Yacht Club, hosted the ‘Second Trip’ to its Otherside metaverse, with thousands of users taking...

Read more

BAYC Owner Yuga Hosts Second Otherside Metaverse Experience

by Xiao Chen Sun
March 28, 2023
0
BAYC Owner Yuga Hosts Second Otherside Metaverse Experience

This past weekend Yuga Labs, the owner of popular NFT collection Bored Ape Yacht Club, hosted the ‘Second Trip’ to its Otherside metaverse, with thousands of users taking...

Read more

Security Hole Found in Google Pixel Devices: Redacted Photos Recovered

by Xiao Chen Sun
March 23, 2023
0
Security Hole Found in Google Pixel Devices: Redacted Photos Recovered

A dangerous security hole has been discovered in the default screenshot editing application on Google’s flagship smartphone, Google Pixel. The editing utility called ‘Markup’ allows images to become...

Read more
Next Post
Ticketmaster sucks. Can blockchain be the cure?

Ticketmaster sucks. Can blockchain be the cure?

Related News

The Day Transaction Fees Took The Crown

The Day Transaction Fees Took The Crown

May 8, 2023
Bitcoin [BTC] miners feel the heat with high sell pressure, can this ease their trouble

Bitcoin [BTC] miners feel the heat with high sell pressure, can this ease their trouble

April 14, 2023
Podcast Created Entirely with AI Debuts on Spotify, Apple

Podcast Created Entirely with AI Debuts on Spotify, Apple

March 23, 2023

Browse by Category

  • Altcoin
  • Altcoin News
  • Altcoins
  • Artificial Intelligence
  • Bitcoin
  • Blockchain
  • Business
  • Cryptocurrencies
  • Cryptocurrency
  • Culture
  • DeFi
  • Economy
  • Education
  • Ethereum
  • Featured
  • Governance
  • News
  • Regulations
  • Uncategorized
  • Web 3.0

Find Via Tags

Altcoin Analyst Bank Binance Bitcoin Blockchain Blog BTC Chain Coinbase Crypto data DeFi digital DOGEcoin ETH Ethereum Exchange Fees finance Foundation FTX Heres high IBM Investors Launches market million Network NFT Platform Polygon potential Price Protocol Regulatory Report SEC support Token Top Trading Upgrade Web3

Categories

  • Altcoin
  • Altcoin News
  • Altcoins
  • Artificial Intelligence
  • Bitcoin
  • Blockchain
  • Business
  • Cryptocurrencies
  • Cryptocurrency
  • Culture
  • DeFi
  • Economy
  • Education
  • Ethereum
  • Featured
  • Governance
  • News
  • Regulations
  • Uncategorized
  • Web 3.0

Recommended

  • Popular Crypto Analyst Bullish on One Ethereum-Based Altcoin, Says It’s Showing ‘Solid Strength’
  • These Bitcoin metrics signal potential bull run as…
  • OpenAI CTO’s Twitter Account Hacked, Used to Promote Fake $OPENAI Crypto Airdrop
  • ‘There needs to be a health warning’: How crypto trading can lead to addiction
  • Bitcoin and Ethereum succumb to TradFi – What now?

© 2023 BTC NOON | All Rights Reserved

No Result
View All Result
  • Home
  • Cryptocurrency
  • Bitcoin
  • Ethereum
  • Blockchain
  • Regulations
  • Altcoin
  • DeFi
  • Web 3.0

© 2023 BTC NOON | All Rights Reserved

Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?