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Block Inc. co-founder Jack Dorsey’s net worth took a severe hit after Hindenburg Research released its latest report alleging the payment company of ignoring widespread fraud. Dorsey lost $526 million on Thursday bringing his net worth down to $4.4 billion, reported Bloomberg. This 11 per cent drop was Dorsey’s worst hit single-day decline since May 2022.
The latest Hindenburg report claims that Block, previously known as Square, has been misleading investors with inflated user metrics. The report also claimed that the company has also allowed fraud against governments and consumers, by allowing criminals to avoid regulation by mass creation of fake accounts. The company denied the claims in the report and said it will explore legal action against the short-seller.
Block shares fell close to 22 per cent on Thursday, before closing down by 15 per cent.
Dorsey, who is also co-founder of Twitter, has most of his personal investment tied up in Block.
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