Hindenburg Research Slams SQ in New Short Report

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FILE PHOTO: Dorsey, co-founder of Twitter and fintech firm Square, sits for a portrait during an interview with Reuters in London

Keep an eye on Block Inc. (SQ).

The stock took a $10 header on a Hindenburg short report allegation that Square has “systematically taken advantage of the demographics it claims to be helping.”

As noted by Yahoo Finance; The short seller accuses Block of a “willingness to facilitate fraud against consumers and the government, avoid regulation, dress up predatory loans and fees as a revolutionary technology, and mislead investors with inflated metrics.”

“CEO Dorsey has touted how Cash App is in hundreds of hip-hop songs as evidence of its appeal,” the report says. “But artists are not rapping about Cash App’s smooth user interface — many describe using it to scam, traffic drugs or even pay for murder.” The report also alleges user counts that ballooned during the pandemic ignored “the contribution of widespread fraudulent accounts and payments.”

Right now, we’re waiting to hear from Bloc or CEO Jack Dorsey on the allegations.

Hopefully, this can blow over fast, and folks can make some money from a rebound.