Jack Dorsey Loses Over $500 Million In Net Worth In A Single Day After Hindenburg Report

Jack Dorsey, co-founder of Block Inc., saw his net worth fall by $526 million after a report by Hindenburg Research accused the company of ignoring fraud.

This is the biggest single-day decline for Dorsey since May. His net worth now stands at $4.4 billion, an 11 per cent drop, according to Bloomberg Billionaires Index.

Block has been accused of inflating user metrics by Hindenburg, resulting in a downside of 65 per cent to 75 per cent in their stock. However, the company denied the allegations and intends to pursue legal action against the short-seller responsible for the claims.

Block plummeted 22 per cent, closed 15 per cent lower on Thursday (23 March).

Most of Dorsey's personal wealth is invested in Block, the company he co-founded and is estimated to be worth $3 billion by the Bloomberg wealth index. He also has a stake in Elon Musk's social media company valued at $388 million.

Hindenburg, led by Nathan Anderson, has criticized billionaires and caused their wealth to decrease multiple times.

Earlier this year, a probe into Gautam Adani and his business empire in India led to a drastic decrease in his net worth, wiping out billions of dollars and causing a decline in his companies' stocks.

Adani's net worth of $60.1 billion now places him at 21^st on the Bloomberg's wealth index, after being ranked second in the world.

In September 2020, Hindenburg focused on Nikola Corp., leading to a significant drop in its stock value. An investigation revealed fraud, and the founder Trevor Milton was convicted in October.