After a recent study by Hindenburg Research said that the payments platform ignored a lot of fraud, Jack Dorsey, who helped start Block Inc., lost a lot of money.
Dorsey’s wealth fell by $526 million on Thursday, his worst one-day drop since May. According to the Bloomberg Billionaires Index, he is now worth $4.4 billion following an 11% decline.
On Thursday, Hindenburg released a report alleging that Block overstated user statistics and that the company had a 65% to 75% drop “on a strictly basic basis.”The corporation disputed the accusations and said that it intends to pursue legal action against the short seller.
On Thursday, Block plummeted as high as 22% before finishing down 15%.
Dorsey, who also co-founded Twitter, has invested the majority of his personal money in Block. According to the Bloomberg wealth index, his interest in the business is worth $3 billion, while his stake in Elon Musk’s social network startup is at $388 million.
It’s not the first time Hindenburg, led by Nathan Anderson, has targeted billionaires and destroyed their riches.
Earlier this year, the company revealed an investigation into India’s Gautam Adani and his empire, causing his firms’ stocks to drop and wiping off tens of billions of dollars from his net worth.
Adani, who was once the world’s second-richest individual, currently ranks 21st on Bloomberg’s wealth index with a fortune of $60.1 billion.
Hindenburg is also targeting Nikola Corp. in September 2020. Nikola’s stock plummeted in the aftermath, and in October, its founder Trevor Milton was convicted of fraud.