On March 23, 2023, before the market opened, market analyst Hindenburg Research released a report entitled “Block: How Inflated User Metrics and “Frictionless” Fraud Facilitation Enabled Insiders to Cash Out Over $1 Billion.” Hindenburg’s research, which took place over a two-year period and was based on “dozens of interviews with former employees, partners, and industry experts, extensive review of regulatory and litigation records” led it to conclude that the “’magic’ behind Block’s business has not been disruptive innovation, but rather the company’s willingness to facilitate fraud against consumers and the government, avoid regulation, dress up predatory loans and fees as revolutionary technology, and mislead investors with inflated metrics.” The report further alleged, among other things, that Block had “wildly overstated” its user accounts and provided banking services to violent criminals.

On this news, the price of Block’s stock has declined by as much as 20% in intraday trading on March 23, 2023.