Block Inc’s co-founder, Jack Dorsey, has experienced a significant decline in his net worth following allegations of fraud within the company, as reported by Hindenburg Research.
The report has resulted in an 11 percent drop in Dorsey’s fortune, marking his most substantial single-day loss since May, with his net worth decreasing by $526 million. Dorsey’s current net worth, according to the Bloomberg Billionaires Index, stands at $4.4 billion.
Hindenburg Research released a report on Thursday, claiming that Block had overstated its user metrics, and predicted a downside of 65-75 percent based on fundamental factors.
Despite the allegations, the company denied any wrongdoing and announced its intention to take legal action against Hindenburg Research, a short-selling entity. Following the report, Block’s stock dropped by 2 percent on Thursday.
Dorsey has a significant personal investment in Block, estimated to be worth around $3 billion, according to the Bloomberg wealth index, while his stake in Elon Musk’s social media company is valued at $388 million.
Previously, Hindenburg, which is owned by Nathan Anderson, has targeted billionaires and led them on a path of financial decline.
Gautam Adani and his business empire were also investigated by the research firm a few months ago, resulting in a significant decrease in his company’s stock value and wiping out tens of billions of dollars from his net worth.
Adani was previously among the world’s richest individuals, alongside Elon Musk, but has now dropped to the 21st position on the wealth index with a net worth of $60.1 billion.
