updraftplus domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home/aonyeani76/cryptocurrencypanther/wp-includes/functions.php on line 6131hustle domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home/aonyeani76/cryptocurrencypanther/wp-includes/functions.php on line 6131wpforms-lite domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home/aonyeani76/cryptocurrencypanther/wp-includes/functions.php on line 6131Crypto investors and experts anticipate a bullish November after Bitcoin ended in the red last month, for the first time in over 6 years. Crypto market crash concerns continue as BTC price falls under $108K due to various reasons, including the US Supreme Court’s decision on Trump tariffs. Hindenburg Omen Indicator Triggered, Will Crypto Market
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]]>Block said it is working with the SEC on how to “explore legal action against Hindenburg Research for the factually inaccurate and misleading report”.
American multinational financial technology giant Block Inc (NYSE: SQ) is currently under intense pressure following a damning report from short seller, Hindenburg Research. According to the report, Hindenburg Research accused Block of running a fraudulent operation that takes advantage of the demographics it claims to serve, the unbanked.
Known for such reports, Hindenburg said its investigation into Block Inc was conducted over the span of two years and it featured interviews with both current and former employees. The report noted that Block is in the habit of inflating its user metrics, a core indication of growth and it profits from doing so.
“Our 2-year investigation has concluded that Block has systematically taken advantage of the demographics it claims to be helping. The “magic” behind Block’s business has not been disruptive innovation, but rather the company’s willingness to facilitate fraud against consumers and the government, avoid regulation, dress up predatory loans and fees as revolutionary technology, and mislead investors with inflated metrics,” the report reads.
Hindenburg also alleges that Block maintains weak compliance with respect to its Know-Your-Customer (KYC) provisions. In a bid to prove this, the research firm said it opened a phony account on Cash App in the name of former President Donald Trump and Tesla CEO Elon Musk.
The firm said the accounts were not just opened, but associated payment cards were requested and that belonging to the fake Donald Trump account was delivered via mail. Per the report,
“Former employees estimated that 40%-75% of accounts they reviewed were fake, involved in fraud, or were additional accounts tied to a single individual.”
Following the damning discoveries, Hindenburg Research said it has taken a short position on Block’s shares. Since the report broke, the company’s stock has been on a downward spiral, closing down 14.82% to $61.88 at the close of trading on Thursday.
The revelations made by Hindenburg Research have received a very strong rebuttal from the company noting that it is a heavily regulated company that takes its compliance obligations so seriously.
“We are a highly regulated public company with regular disclosures, and are confident in our products, reporting, compliance programs, and controls. We will not be distracted by typical short-seller tactics,” Block added.
The company said it is working with the United States Securities and Exchange Commission (SEC) on how to “explore legal action against Hindenburg Research for the factually inaccurate and misleading report they shared about our Cash App business today,” the company said in a press release.
While the actions and approach of Hindenburg Research may be hurtful to investors, it has a high tendency of drawing an intense investigation from the regulator in the near future.
Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.
Forensic research platform Hindenburg Research has teased another report amid the ongoing US banking crisis.
Following its Adani report, US short-seller Hindenburg Research says it will release a new report on another target soon. The New York-based research firm did not specify the next release and provided no details about timing or content.
Nonetheless, speculation is rife that the upcoming Hindenburg report could deal with the ongoing US banking crisis. This is because of the crisis’ impact on the financial landscape as triggered by the recent collapses of some commercial banks.
The Hindenburg Research announcement on another report comes after the firm released an expose on Adani Enterprises earlier in the year. At the time, the research firm alleged that the Indian multinational conglomerate was involved in stock manipulation and accounting fraud. Hindenburg claimed that Adani operated this illicit scheme for decades in a “brazen” way and took a short position on the Indian company. At the time, the Hindenburg research read:
“Today we reveal the findings of our 2-year investigation, presenting evidence that the INR 17.8 trillion (US $218 billion) Indian conglomerate Adani Group has engaged in a brazen stock manipulation and accounting fraud scheme over the course of decades.”
Speaking on Adani Enterprise’s shares, Hindenburg stated:
“After extensive research, we have taken a short position in Adani Group Companies through US-traded bonds and non-Indian-traded derivative instruments.”
The US short seller also accused the Securities and Exchange Board of India of negligence in investigating Adani’s offshore funds. Furthermore, Hindenburg alleged that the securities regulator did not enforce action that would have facilitated a delisting of Adani companies.
Hindenburg’s scathing report on Adani Group saw the Ahmedabad-headquartered multinational conglomerate suffer a mammoth drawdown thereafter. Adani lost more than $150 billion of its market value in the ensuing five weeks. In addition, the group was also ousted from the S&P Dow Jones sustainability index.
Furthermore, Adani Group founder and chairman Gautam Adani sustained a substantial dent in his personal net worth as his company crumbled. Since the turn of the year, Gautam Adani has lost roughly $62 billion and dropped out of the world’s top five richest. Formerly the third-wealthiest individual in the world and Asia’s wealthiest man, Adani is now no. 21 on the Bloomberg Billionaires Index.
Adani Group vehemently denied Hindenburg’s claims and expressed bewilderment at the allegations that impacted its market value. Furthermore, the group claimed that Hindenburg published its report without “contacting us” or “verifying the facts.” According to Adani, which vowed to protect its investors, the damning report is a “malicious combination of selective misinformation.” The company claims that it always complied with all laws.
It is worth noting that Hindenburg’s stock manipulation report on Adani Group’s activities has not been proven in court. Regardless, another Hindenburg Research report may like have a similar effect.
Hindenburg Research is a forensic financial research firm founded in 2017 by Nathan Anderson. The platform seeks to uncover corporate financial impropriety. These acts include fraud, corruption, misconduct, and insider trading.
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge.
When he’s not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.