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After Adani, Hindenburg targets Twitter ex-CEO Jack Dorsey: Know fraud accusations against him

DNA logo DNA 3/23/2023 (DNA Web Desk)
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 A US-based short-selling organisation has levelled accusations against Jack Dorsey following the significant Hindenburg crackdown against Indian tycoon Gautam Adani. In its most recent study, the former CEO of Twitter is the latest target of Hindenburg Research.

According to the research, Block Inc., formerly known as Square Inc., has a $44 billion market cap and describes itself as having created a "magical" and "frictionless" financial system with the objective of empowering the "unbanked" and the "underbanked."

But according to the short seller, Block "systematically exploited the demographics it alleges to be serving." The company's ability to assist scams against consumers and the government, avoid regulation, disguise corrupt loans and fees as a new innovation, and deceive the public with inflated criteria represents the "magic" inside Block's business rather than emerging technologies, according to the report.

Complaints made against Jack Dorsey

Jack Dorsey is charged by Hindenburg with encouraging fraud at Block. Co-founding Twitter, Dorsey led the company as CEO from 2015 to 2021. Hindenburg said that by selling billion-dollar equities during the pandemic, he made a profit.

Co-founders Jack Dorsey and James McKelvey together managed to sell more than $1 billion of stock during the global outbreak, as Block's stock rose on the back of its support of scam, the short-seller alleged, adding that some top management, including CFO Amrita Ahuja and the chief manager for Cash App Brian Grassadonia, also dumped stock worth millions of dollars.

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Moreover, Hindenburg stated that it thought Jack Dorsey had earned a $5 billion personal wealth while purporting to care passionately about the people he was exploiting. According to the report, "Dorsey and key executives have already sold over $1 billion in equity on Block's spectacular pandemic run higher, ensuring they will be fine no matter what happens to everyone else."

According to the research, Jack Dorsey has a number of accounts, some of which seem to be used to defraud Cash App consumers. There are also dozens of phoney profiles named Elon Musk and Donald Trump, it added. "Jack Dorsey" account holders can be found among a large number of Cash App accounts, some of which had "cash tags" that could be used to deceive and con other users.

Former workers projected that 40% to 75% of the accounts they evaluated were fraudulent, fake, or additional accounts connected to a single person.

What is Block Inc?

Entrepreneur Jack Dorsey founded Block Inc., which provides payment and mobile net banking to both consumers and businesses. Square, a company founded in 2009, developed a revolutionary concept. It made it simple for artists and vendors to accept credit card payments by using a small card reader that could be plugged into the headphone jack of a smartphone.


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