MEXCBreaking: Hindenburg Research Exposes Jack Dorsey’s Block Inc
Hindenburg Research Out Now: After building hype all over the global markets, Hindenburg Research finally dropped its latest report exposing Block Inc which was earlier known as Square Inc. The Hindenburg revealed how Block insiders were able to cash out over $1 billion by inflating User Metrics and fraud facilitation.
Block Overstated Actual User Counts
As per the report, Block Inc claims to have developed a “frictionless and magical financial technology” which is the flag bearer of the unbanked and underbanked. After investigating the platform and its process, Hindenburg Research concluded that the block has taken advantage of the term helping.
It claimed that Block has not had any disruptive innovation, while the firm is involved in fraud against customers and the authority. Block avoided regulation, and dress up predatory loans and fees as revolutionary tech.
Read More: Jack Dorsey’s Block (SQ) Crashes 20% As Hindenburg Report Accuses Of Fraud
Hindenburg Research highlighted that in order to reach the conclusion, their team interviewed several ex-employees, partners, and industry experts keeping regulatory and litigation records.
The report indicated that the Block overstated its actual user counts while it understated its customer acquisition costs. As per its former employees, it is estimated that 40%-75% of accounts were fake, fraud generating. While it even mentioned that the additional accounts were tied to a single user.
It further stated that the platform took the “Wild West” approach to compliance which made it easy for bad actors to help generate accounts in mass numbers. This involved identity fraud with other mega scams.
Also Read: Banks Under Pressure As Markets Brace For Hindenburg Research Another “Big Target”
Jack Dorsey, CEO of Block Inc has publicly hailed how Cash App has been brought up in several hip hop songs which shows the platform’s mainstream appeal. However, the Hindenburg research team believes that Dorsey has built an empire that comprises his $5 billion personal fortune.
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