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
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