> Dorsey [...] told investors about the large number of songs named after Cash App and described how music had become a way to share with others how valuable the app is to them personally, providing them with “so much utility.”<p>> A review of songs mentioning Cash App shows that the artists are not generally rapping about Cash App’s smooth user interface and robust software integration toolkit.<p>> Instead, lyrics describe how easy it is to move money through Cash App to facilitate fraud, traffic drugs, or even pay for murder.
I agree there's a need for short sellers to keep the market in check, but this quote, also listed as the number one issue, doesn't really sit well with me:<p>> Misleading investors by overstating its genuine user counts, with former employees estimating as much as three quarters are “fake, involved in fraud, or…additional accounts tied to a single individual.”<p>Do they really know? Or is it just a feeling that they have, or a rumour somebody spread? Is it a rumour a former disgruntled employee blew up out of proportion?<p>The risk to the short seller is clear, but if they're going to advertise themselves as a "new breed of short sellers, relying on deep research", then they should come up with deep research, not this. Of all the things listed, I didn't see one thing that is based on any real data. They obviously hold clout because if I came up with this, the market wouldn't really care.<p>But maybe it can't really be fixed, don't know. Maybe the short seller is the fraud and it needs to take down several companies before people realize it's BS and eventually gets wiped out.
Direct link to the source website:<p><a href="https://hindenburgresearch.com/block/" rel="nofollow">https://hindenburgresearch.com/block/</a>
Block published a press release [0] saying they intend to sue. But, that article by Hindenburg seems quite in-depth and they'll have a hard time squeezing themselves out of this.<p>[0]: <a href="https://investors.block.xyz/news/news-details/2023/Blocks-Response-to-Inaccurate-Short-Seller-Report/default.aspx" rel="nofollow">https://investors.block.xyz/news/news-details/2023/Blocks-Re...</a>
In yesterday's thread about Hindenburg's post[1], there were several who claimed that Square rounds down to the nearest penny when paying their customers, and keeps the difference, and this amounts to millions. This both for their shares and their payments.<p>I do not know if that is fraud, but if so, Hindenburg should pay attention.<p>BTW, this was done in Superman, and used to build an [evil] AGI. Of course, that is just science fiction. Just to be sure though, is Square a partner in OpenAI?<p>[1]: <a href="https://news.ycombinator.com/item?id=35273782" rel="nofollow">https://news.ycombinator.com/item?id=35273782</a>
Venmo has massive fraud too. I knew drug dealers in 2017 in San Francisco who openly sold marijuana, cocaine and other drugs via Venmo. Tens of thousands in transactions every 2-months.<p>Hindenburg criticized the ability for a user to get a debit card by mail in any name but that is a form of KYC. It is true many companies including PayPal don’t force you to provide your social security number. But the user can still be tracked.<p>I have never provided my social security number or face or ID to Venmo, PayPal or Cash App.<p>And the name I use on all those accounts is not my legal name. I do pay my taxes, I don’t commit crimes and it’s the name I use in real life and on social media.<p>This is more an attack on privacy rights and easy access to financial services. If fraud happens, law enforcement should prosecute. Don’t punish the lawful consumer.<p>Hindenburg’s just a more sophisticated scammer who apparently made $5 million off this trade-<p><a href="https://twitter.com/unusual_whales/status/1638978604867665928" rel="nofollow">https://twitter.com/unusual_whales/status/163897860486766592...</a>
I know this is going to be controversial, but I think it has to be said. Jack ruined Twitter first [1] (by over-hiring and then selling it to Elon) and now it's Block's turn. He still made billions, while thousands got laid off and are still suffering under Elon's questionable so called leadership. Are these the entrepreneurs we should be looking up to? The tech industry is already facing the brunt because of the mistakes CEOs have done by "miscalculating" or "misjudging" the macroeconomic conditions; the same CEOs are enjoying their billions.<p>[1] <a href="https://twitter.com/jack/status/1588913276980633600" rel="nofollow">https://twitter.com/jack/status/1588913276980633600</a>
I've not read the article but I have a question:
lets say, after an investigation by the Gov, the illegal doings in the article turn out to be false. Do the company shareholders of the accused company have the right to sue, in this case Hindenburg research, for the stock value loss due to the article?
They even made a rap compilation video!<p><a href="https://www.youtube.com/watch?v=StjWk3Mj-M4">https://www.youtube.com/watch?v=StjWk3Mj-M4</a>
“ Initial Disclosure: After extensive research, we have taken a short position in shares of Block, Inc. (NYSE: SQ). This report represents our opinion, and we encourage every reader to do their own due diligence. Please see our full disclaimer at the bottom of the report.”<p>I’m surprised that it’s legal to short sell then go on the attack. If it is, imagine having the cojones to do that and then go live with this report.
It seems like a pretty wild time to be on the offensive against American fintech companies. No real comment on the merits of their research (yet), just a little shocked at the timing.
I haven't used Bitcoin since 2014. In ten years I never missed it once. Unlike my phone, or Hackernews website. But, I am not a criminal or scammer, so not the target group I guess. Bitcoin is like Victor Wondermega RG-M1.