After Hindenburg’s Much Controversial Report on India’s Industrial Tycoon Adani, New York Based Firm is Back with another Finding on Payment Firm Block which is backed by Ex Twitter CEO Jack Dorsey.
What does Block as a Firm do?
Block is a Fintech specializing in Mobile Payments which manages two types of primary systems which is Seller System and Cash System. Block Provides Financial Products to individuals and aids new Start Ups to grow their presence.
Acquisitions of Block Payment Firm in Last 5 Years:
Block has taken over Five Companies in Last 5 Years the details of which are given below:
- Stitch Labs: Stich Labs Provides an Inventory Management Solution which is based on Cloud and a solution and service for management of orders .It Serves as an Operational Hub for Operations Branding, Centralization of Inventory across all sales channels and all locations for greater management and Flexibility. Stitch Labs was acquisitioned on July-10-2020.
- Verse Technologies: Verse Technologies is a Global Payment Technology Firm which allows users t share payment in an easy and instant way.Verse Technologies was Acquisitioned in June 2020.
- Weebly Inc: Weebly has a well known Global Platform that simplifies for users the process of making Websites, Blog or Online Stores .It was acquisitioned in May 2018.
- Eloquent Labs: Eloquent Labs is a Conversational AI Chatbot Platform which provides instant support to users live .It was acquisitioned in February 2020.
- Third Party LLC: Third Party LLC is an Online Application Programming Interface Platform (API) for building investment related Financial Applications. It was acquisitioned in February 2019.
Block Inc Was Formerly Known as Square Inc which is a 44 Billion$ Market Cap Company specializing in Fin Tech to Help the budding startups and weak funded firms.
What Does Hindenburg Reports against the Block summarily?
Hindenburg claims that the Company Block in the garb of providing assistance to Underbanked and Weak Funded Firms in Fintech, helps in executing Fraud and Malpractices against Consumers and Government, avoid regulatory measures .
Offer and Dress up High Interest Predatory Loans and Fees in the name of east to use technology and misguide investors with inflated metrics.
Exaggeration of Genuine User Counts and understated its customer acquisition costs:
Block has very aggressively exaggerated the genuine User Counts and understated its Customer acquisitions costs .Around 80 Percent of accounts under review were not genuine and were linked to one individual.
Covid 19 Pandemic and Sudden Increase of User Counts and Annual Revenue of Block
The Pandemic Led Block to an Unprecedented Success in terms of record User Acquisition during 18 Month of Period of Pandemic and Revenue Increase. This resulted in a very sharp and record increase of Block Stocks by an incredible 640 Percent. But as per Hindenburg, the thing which was kept under dark was the Fraudulent Payment Practices and Fraudulent Accounts which led to such surge.
Block Co Founders Jack Dorsey and James McKelvey Role in Dumping of Block Stocks worth more than 1 Billon $ after the Unforeseen increase of Block Stocks.
Hindenburg Claims Jack Dorsey and James McKelvey systematically dumped there shares worth 1 Billion Dollars after shares of Block achieved record high which was allegedly manipulated due to fraudulent payment malpractices and fraudulent account malpractices.
Cash Apps Fake Profile and Building Fortune on the Basis of Cash Apps fake Profiles:
The Report of Hindenburg Claims that Jack Dorsey has amassed fortune of more than 5 Billion $ through Cash App and has many accounts cheating cash app users. Cash app has many fake profiles of Jack Dorsey, Donald Trump and Elon Musk for cheating genuine cash app users and scam them.
