Hindenburg's new explosion!

After Adani, Hindenburg accuses Block of $1B fraud and misleading investors.

American research firm Hindenburg had exposed Adani Group earlier this year on January 24, following which Adani Group's shares had suffered a significant decline.

Just two months after exposing Adani Group, Hindenburg has now opened a new front against another company. Hindenburg indicated this by tweeting on Thursday morning.

Hindenburg Research, a US-based short-selling firm, has released another explosive report, this time targeting the Silicon Valley favorite Block, Inc. (SQ) founded by Jack Dorsey.

Actually, American short-selling firm Hindenburg Research has now targeted technology firm Block Inc, and leveled several serious allegations against it.

If Hindenburg's report is to be believed, the company led by Jack Dorsey, Block Inc, has artificially inflated its user numbers and reduced its customer acquisition costs.

A significant percentage (ranging from 40% to 75%) of the accounts reviewed by them on Cash App were either fraudulent, fake, or associated with a single individual's multiple accounts.

After conducting a two-year investigation into Block, Hindenburg released the report. The report concluded that Block has been exploiting the very demographics it purports to assist in a systematic manner.