Hindenburg publishes amazing details of Jack Dorseys blockade, payment company beats back

Hindenburg publishes amazing details of Jack Dorseys blockade, payment company beats back

After a two -year investigation, Hindenburg concluded that Block (formerly known as Square) "systematically exploited demography that is supposed to help". The report accused the company of "supporting fraud against consumers and the government" and "bypassing regulations". It also described the loans and fees of Block as "predatory" and designed to "mislead investors with excessive key figures".

The empty seller based in the USA said that his research included numerous interviews with former employees, partners and industry experts as well as a comprehensive review of records for supervisory authorities and legal disputes as well as FOIA and public records.

Hindenburg report on block

in a report published on March 23, Hindenburg claimed that Block seems to be "no apparent advantage over its most important competitive platforms such as PayPal/Venmo, cell or Apple. The report also states that the company used non -compliance as a tactic to expand its user base and recorded a very underserved part of the population - criminal -.

Hindenburg added that more than a dozen former cashapp employees had admitted the pressure of management, which led to disregarding anti-Money Lundering (AML) and Know your Customer (KYC) regulations. It was also claimed that blocks had permitted fraudulent accounts that enabled fraud to grow on the cash app, to generate illegal income and to inflate the user notice.

The report also states that Jack Dorsey, who resigned as a Twitter CEO in mid-2021, together with other block insiders-James McKelvey, Chief Financial Officer Amrita Ahuja and Cash App Manager Brian Grassadonia-sold stocks of over 1 billion US dollar, whose price "due to his fraud" is.

"We also believe that Jack Dorsey has built up an empire-and has accumulated a personal assets of $ 5 billion-and explains that he is very careful about the demography that he exploits. Since Dorsey and top executives have already sold over $ 1 billion in stocks when Blocks ran higher pandemic, they have been good for them, so that they are good for them, Regardless of the result for everyone else. “

The accusations raised against block also affected the increase in sales and user growth by facilitating billions of dollars of pandemy-help fraud. At this point, the company shifted its focus on the potential use of cash app for relieving pandemics.

The report indicates that almost 11 million people have activated the direct deposit function in order to receive economic and unemployment benefit from the US government. While funds flowed into the cash app system, Block raised a juicy fee of 0.5 % to 1.75 % for the acceleration of payments that would otherwise take 1-3 working days.

The report also found that Block ignored the “obvious signs of fraud”, even though it had received warnings from former employees and the government.

Block answers

Block fired back to the empty seller and described the report as factually "inaccurate and misleading". In its latest update, the company announced that the US stock exchange supervisory authority (SEC) work together and to examine legal steps against Hindenburg Research. It was also said that the report "aims to deceive and confuse investors".

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