New York: Block Inc. co-founder Jack Dorsey’s net worth was hammered after Hindenburg Research’s latest report, which alleged the payments company ignored widespread fraud.
Dorsey’s fortune plunged by $526 million on Thursday, his worst single-day decline since May. He’s now worth $4.4 billion after the 11% drop, according to the Bloomberg Billionaires Index.
Hindenburg released a report Thursday claiming Block had inflated user metrics, and that the stock has downside of 65% to 75% “on a purely fundamental basis.” The company denied the allegations and said it plans to explore legal action against the short-seller.
Block fell as much as 22% on Thursday, before closing down 15%.
Dorsey, who also co-founded Twitter, has most of his personal fortune 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.
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