NewsletterBreaking: 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.
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Premium Partners
Delivered every day.
- Insights that move markets
- 100,000 active subscribers
Related Articles
- BlackRock Bitcoin ETF Ranks Among Top ETFs In 2025 Despite Crypto Downturn
- Stablecoin Adoption Deepens as Klarna Turns to Coinbase for Institutional Liquidity
- Ripple, Circle Could Gain Fed Access as Board Seeks Feedback on ‘Skinny Master Account’
- Fed’s Williams Says No Urgency to Cut Rates Further as Crypto Traders Bet Against January Cut
- Trump to Interview BlackRock’s Rick Rieder as Fed Chair Shortlist Narrows to Four
- Will Solana Price Hit $150 as Mangocueticals Partners With Cube Group on $100M SOL Treasury?
- SUI Price Forecast After Bitwise Filed for SUI ETF With U.S. SEC – Is $3 Next?
- Bitcoin Price Alarming Pattern Points to a Dip to $80k as $2.7b Options Expires Today
- Dogecoin Price Prediction Points to $0.20 Rebound as Coinbase Launches Regulated DOGE Futures
- Pi Coin Price Prediction as Expert Warns Bitcoin May Hit $70k After BoJ Rate Hike
- Cardano Price Outlook: Will the NIGHT Token Demand Surge Trigger a Rebound?
