The activist investment group Hindenburg Research published a report on Thursday announcing that it's shorting payments giant Block, whose products include the digital wallet Cash App and payments platform Square.
The short-seller's announcement detailed numerous allegations against Block, led by Jack Dorsey, the cofounder and former CEO of Twitter. Among other claims, the short-seller alleges that Block, formerly known as Square, has misled investors on key metrics, including its user counts and how much it spends targeting new customers, and has opened up Cash App to criminals, claiming the digital wallet is used for sex trafficking and the trafficking of minors.
