Former Twitter CEO Jack Dorsey’s company Block (formerly known as Square) took a major hit on Thursday after shares nosedived by almost 15% after reports accusing the platform of catering to criminals.
Dorsey’s net worth also took a bashing, falling by U$562 million dollars.
The drop in shares prices resulted from an explosive report by Hindenburg Research accusing Dorsey’s firms of misleading investors and embracing a criminal user base.”
“Hindenburg Research on Thursday disclosed its short position in Block and released findings from a two-year investigation, alleging the company ‘misled investors on key metrics, and embraced predatory offerings and compliance worst-practices in order to fuel growth.'” The Daily Mail reported.
The report alleges payment company Block engages in rampant criminal behavior
“Many of Hindenburg’s claims center on alleged rampant criminal use of Cash App for drug deals, sex trafficking, and even murder-for-hire,” The Mail notes.
Rapper 22Gz: ‘I paid them hitters through Cash App.’
Rapper Nuke Bizzle: convicted for COVID stimulus fraud, used Cash App as the payment mechanism. Boasted about the scheme in his lyrics.
Hindenburg Report: “Block [owner of Cash App] has embraced one traditionally very ‘underbanked’ segment of the population: criminals.”
Block responded, saying, “We will not be distracted by typical short seller tactics.”
It’s not surprising Twitter was so infested by criminals under Jack Dorsey.
Twitter was dogged with child exploitation material for years, which new CEO Elon Musk is in the process of cleaning up.
Musk stated that “removing child exploitation is priority #1” in a tweet in late November.
Jack Dorsey allowed criminals to run rampant for years.
Before Musk’s takeover of Twitter, the company suffered several advertisers fleeing the platform after discovering their ads appeared next to child pornography.
As The Daily Fetched reported at the time, Big brands, including Walt Disney Co, NBCUniversal, Coca-Cola Co, and even a children’s hospital, were advertised on profile pages featuring child pornography, according to new research about child sex abuse online from the cybersecurity group Ghost Data.
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