Hindenburg Research Report Alleges Jack Dorsey's Block Enabled Criminal Fraud, and Inflated User Metrics

Hindenburg Research is an investment research firm known for publishing critical reports on publicly traded companies. 

Hindenburg Research Report Alleges Jack Dorsey's Block Enabled Criminal Fraud, and Inflated User Metrics

Hindenburg alleged that Square, a company led by Twitter Ex CEO Jack Dorsey, enabled criminal fraud and user growth metrics were artificially inflated.

The report specifically focused on allegations of fraudulent activity on Square, such as the sale of nonexistent Bitcoin and the targeting of vulnerable users for high-fee services. 

Hindenburg Research also claimed that Square inflated its Bitcoin revenue and user growth metrics by including transfers between its accounts and those of its customers, as well as by counting inactive or fraudulent accounts.

Hindenburg report published on March 23, that the company allows users to have dozens or even hundreds of Cash App accounts 

The report specifically focused on allegations of fraudulent activity on the Cash App, such as the sale of nonexistent Bitcoin and the targeting of vulnerable users for high-fee services. 

Hindenburg Research also claimed that Square inflated its Bitcoin revenue and user growth metrics by including transfers between its accounts and those of its customers, as well as by counting inactive or fraudulent accounts.

According to Hindenburg, a former employee of the company estimated that between 40% to 75% of the accounts on the app were fake, also said to be a consequence of the lax requirements that block has for account creation on the platform with users needing just an email or account number. 

Also, the policies of banning accounts and not individuals would allow blacklisted criminals to be onboarded again almost immediately by using a different email or phone number. 

Hindenburg report found that the report Cash App's feature allows each user to change their name and still make use of the service of the platform. also, there were dozens of Elon Musk and Jack Dorsey in the app. 

Hindenburg employee was allegedly able to obtain a cash card issued in the name of Donald j Trump. 

Hindenburg claims that Cash App served as a platform for scammers to organize fraudulent claims at that time after Jack Dorsey express that the company would allow users without a bank account to receive the benefits. 

According to a former employee consulted by Hindenburg. The rampant fraud happening regarding these payments blocked started seeing complaints from several states in the order of the tens of thousands. 

Hindenburg firm was acting in the market and betting against the price of block's stock going in short at that time Block's stock price is down by 10%.

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