Hindenburg Research, an activist investor, has recently responded to Block, a fintech company, about a report that it had released earlier this month. In the report, Hindenburg accused Block of fraudulent activities, such as inflating user metrics and promoting a song called "Cash App" by 22Gz which allegedly detailed how to use Cash App to easily pay for murder. Furthermore, the activist investor said that Block had not denied these allegations when responding to the initial report.

Hindenburg stated that when filing numbers to investors, Block disclosed 39 million unique Social Security Numbers (SSNs) and 44 million verified accounts which were used with Cash App. However, in September 2022 the company reported that 80 million annual transacting actives were using the app, which Hindenburg believes was contracted in order to draw justification for Block’s acquisition of Afterpay. On the other hand, it is unclear how much money Block has spent on fraud expenses as the company did not provide detailed statistics in their reply to Hindenburg's initial report.

Hindenburg has already shorted Block's stock based on their accusations. Reacting to the allegations, Block has denied these claims and has stated that they intend to work with US regulators to explore any legal action against the activist investor.



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