Hindenburg report: Dorsey Poorer by $526m in Stock Rout :- As short-seller Hindenburg Research showed that Jack Dorsey’s digital payment business Block enables fraud against consumers and the government, the former co-founder and CEO of Twitter lost $526 million. Bloomberg Billionaires Index estimates that Dorsey is now worth $4.4 billion following his greatest single-day drop.
Block’s stock also plummeted on Thursday, falling as much as 22% before completing the day down 15%. With a goal to enlighten the “unbanked” and the “underbanked,” Block, originally known as Square, asserts to have created a “frictionless” and “magical” financial technology.
In its analysis, Hindenburg Research said that it had taken its most recent short position on Block. “Our two-year research has determined that Block has systematically taken advantage of the demographics it claims to be serving,” the firm wrote.
We also think Jack Dorsey has amassed a personal wealth of $5 billion while purporting to care profoundly about the demographics he is exploiting, the statement continued.