Jack Dorsey business target of Hindenburg report

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Jack Dorsey's Block sees shares drop after famed short-seller Hindenburg levels claims.

Tech billionaire Jack Dorsey is facing scrutiny, after a report accuses the payments company he leads of inflating user numbers and catering to criminals.came from short-seller Hindenburg Research, which is known for taking on high-profile targets such as Indian tycoon Gautam Adani.Block, which former Twitter boss Mr Dorsey co-founded in 2009 and leads as chief executive, said it was exploring legal action against Hindenburg for the "factually inaccurate and misleading report".

Formerly known as Square, Block made its name with a sleek, small white credit card reader that became popular among vendors at farmer's markets, and other small businesses, allowing the firm to fetch a nearly $3bn valuation when it listed on the stock exchange in 2015. Hindenburg alleged Block provided misleading statistics on its users which it claimed had been linked to criminal activity such as sex trafficking.

 

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