Hindenburg Report Causes Block Stock Plunge

Payment company Block's shares plunged over 18% after short-seller Hindenburg Research announced it was its latest short position, alleging that the company allowed criminal activity to operate with lax controls and "highly" inflates Cash App's transacting userbase, a key metric of performance. Hindenburg's extensive report includes screenshots of internal systems and employee messages. The report alleges that unbanked customers were involved in criminal or illicit activity, and Cash App's compliance programs were deficient. Representatives for Block did not immediately respond to a request for comment.