Jack Dorsey Loses 526M Fortune Hours After Hindenburg Report

Jack Dorsey Loses $526M Fortune Hours After Hindenburg Report

Jack Dorsey loses $526 million fortune after Hindenburg report

Jack Dorsey also co-founded Twitter.

Block Inc. co-founder Jack Dorsey’s net worth has been hammered following a recent report from Hindenburg Research that claimed the payments company ignored widespread fraud.

Dorsey’s fortune plummeted $526 million on Thursday, his worst one-day decline since May. It’s now worth $4.4 billion after falling 11%, according to the Bloomberg Billionaires Index.

Hindenburg released a report Thursday claiming that Block has overstated user metrics and that the stock has downside potential of 65% to 75% “on a purely fundamental basis.” The company rejected the allegations and announced that it would examine legal action against the short seller.

Block fell as much as 22% on Thursday before closing down 15%.

Dorsey, who also co-founded Twitter, has most of his personal fortune tied up in Block. The Bloomberg wealth index puts his stake in the firm at $3 billion, while his position in Elon Musk’s social media company is valued at $388 million.

7n75qcvo

It’s not the first time Hindenburg, led by Nathan Anderson, has singled out billionaires and brought down their fortunes.

The firm released an investigation into Gautam Adani and his empire earlier this year, causing his companies’ stocks to plummet and erasing tens of billions of dollars from his net worth.

Adani, who was once the second richest person in the world, is now ranked 21st on the Bloomberg Wealth Index with a fortune of $60.1 billion.

Hindenburg also acquired electric car maker Nikola Corp. in September 2020. targeted. Nikola’s shares plummeted as a result, and an October investigation led to a fraud conviction against its founder, Trevor Milton.