Famous short-seller Hindenburg Research has hit out against Jack Dorsey-led fin-tech company Block accusing it of fraud.
According to the research firm, the investigation, which lasted over two years, uncovered a lot of major concerns.
The report stated: “Our 2-year investigation has concluded that Block has systematically taken advantage of the demographics it claims to be helping. The “magic” behind Block’s business has not been disruptive innovation, 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.”
On the release of the news, Block’s shares fell 20% in premarket trading.
Hindenburg was in the news recently for reporting on the alleged fraud committed by Gautam Adani’s companies in India, labeling it as the largest corporate fraud in history.
This article originally appeared on The Tokenist
Essential Tips for Investing: Sponsored
A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
