On Thursday, Hindenburg accused Twitter founder Jack Dorsey’s company Block Inc of “frictionless” fraud that inflated user metrics and allowed insiders to cash out more than $1 billion.
The “magic” behind Block’s business has not been disruptive innovation, according to a US-based shortseller’s two-year investigation, but rather the company’s willingness to facilitate fraud against consumers and the government, avoid regulation, dress up predatory loans and fees as revolutionary technology, and mislead investors with inflated metrics.
“Block, formerly known as Square, 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,” the report stated.
“The magic behind Square has not been innovation, but its willingness to mislead investors, facilitate fraud, avoid regulation and dress up predatory products as revolutionary tech,” it continued.