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SQ.US
id: 633

Block Inc (SQ) Case after Hindenburg Report

  • Hindenburg Research issued a report on Block Inc (SQ) alleging Fraud in Company’s management.
  • $SQ dropped 14.83% and lost $5.83 billion of market cap.
  • Investors suspect Block & its Leaders of gross misconduct and misleading, which led to significant investment losses.
On March 23, 2023, Hindenburg Research issued a report on Block Inc (SQ) titled “Block: How Inflated User Metrics and “Frictionless” Fraud Facilitation Enabled Insiders to cash out over $1 billion.

Among other things, 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 a revolutionary technology, and mislead investors with inflated metrics.”
  • "Our research indicates, however, that Block has wildly overstated its genuine user counts and has understated its customer acquisition costs. Former employees estimated that 40%-75% of accounts they reviewed were fake, involved in fraud, or were additional accounts tied to a single individual.”
  • "Core to the issue is that Block has embraced one traditionally very “underbanked” segment of the population: criminals. The company’s “Wild West” approach to compliance made it easy for bad actors to mass-create accounts for identity fraud and other scams, then extract stolen funds quickly.”
On this news $SQ dropped 14.83%, losing $ 5.83 billion of its capitalization and seriously injuring Investors.

If appeared diggings are constituting true facts, Investors have grounds to suspect Block, its Leaders, and its Service Providers of fraud and gross misconduct, which led to significant investment losses.
Alleged Offence
Mismanagement
Misleading Statements
Financial Misrepresentation
Fraud
Failure to Disclose
Malpractice
Negligence
Breach of Fiduciary duty
Omissions
Suspected Party
Directors
Management
Shareholder
Service Provider
Security Type
Stocks
Trade Direction
Long
Shock Event Date
23 March 2023
Collecting participants…

Block Inc

Block, Inc. operates as a technology company with a focus on financial services. It builds tools to help people in accessing the economy. Its products include Square that makes commerce and financi...

    Ticker
    SQ.US
    ISIN
    US8522341036
    CIK
    1512673
    Sector
    Technology
    Industry
    Software - Infrastructure
    Country
    USA
    Address
    1955 Broadway, Oakland, CA, United States, 94612