Even as the US-based Hindenburg Research has released its latest report alleging that payments firm Block ignored widespread fraud, its co-founder Jack Dorsey’s net worth has plunged by $526 million on Thursday, according to a Bloomberg report.
The $526 million decline is the biggest single-day fall since May 2022, according to the report. On the Bloomberg Billionaires Index, Dorsey’s net worth now stands at $4.4 after the 11 per cent drop.
Hindenburg Research on Thursday disclosed short positions in Block Inc and alleged that the payments firm led by Twitter co-founder Jack Dorsey overstated its user numbers and understated its customer acquisition costs.
Block vowed to fight back, saying it would explore legal action against the short seller for its “factually inaccurate and misleading report” that was “designed to deceive and confuse investors”.
“Hindenburg is known for these types of attacks, which are designed solely to allow short sellers to profit from a declined stock price,” the payments firm said, adding that it would work with the U.S. Securities and Exchange Commission.
The report comes at a time when the outlook for the payments industry has been clouded by worries over the strength of consumer spending in the face of elevated levels of inflation and expectations of an economic downturn.
The report comes at a time when the outlook for the payments industry has been clouded by worries over the strength of consumer spending in the face of elevated levels of inflation and expectations of an economic downturn.
Cash App allows users to transfer money through a mobile application and is touted by the company as an alternative to traditional banking services.
(With Inputs from Agencies)
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