Billionaires Dorsey, McKelvey Profited From Block’s ‘Rampant’ Fraud, Hindenburg Alleges

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Billionaires Dorsey, McKelvey Profited From Block’s ‘Rampant’ Fraud, Hindenburg Alleges
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Block falsely inflated its stock’s value by lying about internal metrics, allowing company insiders including billionaires Jack Dorsey and Jim McKelvey to profit wildly, according to a report.

Mobile payment giant Block falsely inflated its stock’s value by lying about internal metrics, allowing company insiders including billionaires Jack Dorsey and Jim McKelvey to profit wildly, according to a bombshellJack Dorsey's Block is facing some major allegations from short seller Hindenburg.

Block “wildly overstated its genuine user counts” and “understated its customer acquisition costs,” according to Hindenburg, alleging the Cash App and Square parent company improperly propped up its share price.“As Block’s stock soared on the back of its facilitation of fraud, co-founders Jack Dorsey and James McKelvey collectively sold over $1 billion of stock during the pandemic,” Hindenburg notes.

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