Bitcoin Inc. co-founder Jack Dorsey’s net worth plummeted after Hindenburg Research’s recent research, which claimed the payments platform disregarded significant fraud.
Dorsey’s wealth fell by $526 million on Thursday, his lowest single-day drop since May. According to the Bloomberg Billionaires Index, he’s now worth $4.4 billion following an 11% decline.
Hindenburg produced a study on Thursday alleging that Block has overstated user stats and that the company had a 65% to 75% fall “on a strictly basic basis.” The corporation refuted the claims and said that it intends to pursue legal action against the short seller.
Block plummeted as high as 22% on Thursday before finishing down 15%.
Dorsey, who also co-founded Twitter, has most of his personal money invested in Block. The Bloomberg wealth index values his interest in the business at $3 billion, while his stake in Elon Musk’s social networking venture is valued at $388 million.
It’s not the first time Hindenburg, headed by Nathan Anderson, has targeted billionaires and sent their wealth plummeting.
Earlier this year, the company launched an investigation into India’s Gautam Adani and his empire, causing his companies’ stocks to plummet and erasing tens of billions of dollars from his net worth.
Adani used to be the second-richest person in the world, but now his $60.1 billion fortune puts him at 21st on Bloomberg’s wealth index.
Hindenburg also plans to acquire Nikola Corp. in September 2020. In the aftermath, Nikola’s stock plummeted, and in October, its creator, Trevor Milton, was convicted of fraud.
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