Block Inc. co-founder Jack Dorsey’s net worth took a hammering after Hindenburg Research’s latest report, which alleged that the payments company ignored widespread fraud.
Dorsey̵[ads1]7;s fortune plunged $526 million on Thursday, his worst one-day decline since May. He is now worth $4.4 billion after the 11% drop, according to the Bloomberg Billionaires Index.
Hindenburg released a report Thursday claiming that Block had inflated user valuations and that the stock has a 65% to 75% downside “on a purely fundamental basis.” The company denied the allegations and said it plans to explore legal action against the short seller.
Block fell a whopping 22% on Thursday, before closing down 15%.
Dorsey, who also co-founded Twitter, has most of his personal wealth tied up in Block. The Bloomberg wealth index estimates his stake in the firm is worth $3 billion, while his position in Elon Musk’s social media company is valued at $388 million.
It’s not the first time the Hindenburg, run by Nathan Anderson, has singled out billionaires and sent their fortunes plummeting.
The firm released an investigation into Gautam Adani and his empire earlier this year, sending the companies’ shares tumbling and wiping tens of billions of dollars from his net worth.
Adani, who was once the world’s second-richest person, now ranks 21st on Bloomberg’s wealth index with a fortune of $60.1 billion.
Hindenburg also charged electric car maker Nikola Corp. in September 2020. Nikola’s shares plunged in the aftermath and an investigation led to a fraud conviction against founder Trevor Milton in October.