There are also allegations of exaggerating customer numbers and understating costs. Hindenburg published the report on Thursday. The report also alleges that Block Inc’s CFO and Indian-born Amrita Ahuja illegally invested millions of dollars in the company’s shares during the Covid-19 pandemic. The move sent the company’s shares soaring.
According to Hindenburg Research, 40 to 75 percent of accounts reviewed and updated by Black Ink’s staff are fake. Counting multiple accounts linked to one person. Due to this kind of fraud, the stock price of the block rose. It is also alleged that the company has committed accounting fraud. The co-founders of the company, Jack Dorsey, James McKelvey, etc., sold more than $100 million worth of shares during the spread of Covid.
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It was during this time that millions of dollars were invested in Indian-origin company CEO Amrita Ahuja’s shares. The report alleges that not only Amrita Ahuja, the lead manager of the company’s Cash App, and other executives poured millions of dollars into the stock. Hindenburg alleges that what was behind Blok’s business was not a hyped innovation but a deception of consumers and the government.
Hindenburg claims that the report was published after two years of investigation. Claims claim that Hindenburg conducted numerous interviews with the company’s former employees, partners and industry experts and reviewed regulatory and accounting records to prepare the report.
