Jack Dorsey’s wealth tumbles $526 million after Hindenburg report

By Team Newsable | First Published Mar 24, 2023, 10:44 AM IST

Dorsey's fortune plunged by $526 million, his worst single-day decline since May. He's now worth $4.4 billion after the 11% drop, according to the Bloomberg Billionaires Index.

After Hindenburg's most recent assessment on Jack Dorsey's Block Inc., the co-founder's net worth took a beating. The payments business allegedly tolerated rampant fraud, according to the study. Thursday was the greatest single-day decrease in Dorsey's fortune since May, a $526 million drop, according to the Bloomberg Billionaires Index. After the 11 percent decline, his current value is $4.4 billion.

According to Hindenburg's research, Block has permitted a proliferation of bogus accounts on cash applications, earning erroneous income and inflating user stats. For both individuals and businesses, Block provides payment and mobile banking services.

Tap to resize

Latest Videos

Tap to resize

Also Read | Hindenburg Research targets Jack Dorsey's Block Inc, claims insider fraud

Block's CASH App platform received considerable attention from the research company financed by Nathan Anderson. They claim that Block's ascent to fame is the result of people using the Cash App. The company's willingness to assist fraud against consumers and the government, avoid regulation, disguise predatory loans and fees as ground-breaking technology, and deceive investors with inflated metrics, according to the short seller's report, has been the "magic" behind Block's business rather than disruptive innovation.

In a research, Hindenburg said that Block had exaggerated its user metrics and that the company was undervalued by 65 to 75 percent "on a purely fundamental basis." The business refuted the accusations and declared that it would consider taking legal action against the short-seller.

Also Read | Accenture to lay off 19,000 employees amid worsening global economic outlook

The majority of Dorsey's personal wealth is invested in Block, which he co-founded along with Twitter. His interest in the company is estimated to be worth $3 billion by the Bloomberg wealth index, while his stake in Elon Musk's social media startup is at $388 million.

It's not the first time Nathan Anderson's company, Hindenburg, has targeted millionaires and reduced their wealth.

Earlier this year, the company published an investigation into Indian businessman Gautam Adani and his empire, which sent his firms' stocks tumbling and destroyed tens of billions of dollars' worth of his wealth.

Also Read | Who is Rahul Roy Chowdhary, the Grammarly's new Indian-origin CEO

For more reliable and latest news