Block (ASX:SQ2) attacked by a short-seller
Nick Sundich, March 24, 2023
Jack Dorsey-led fintech Block (ASX:SQ2) has been attacked by short-seller Hindenburg Research.
Hindenburg has essentially alleged the entire company is a fraud while SQ2 has predictably denied the allegations and threatened legal action, as most companies in this position do.
No time to do stock research, but you still want to invest?
Stocks Down Under Concierge gives you timely BUY and SELL alerts on ASX-listed stocks!
With price targets, buy ranges, stop loss levels and Sell alerts too.
GET A 3-MONTH FREE TRIAL TO CONCIERGE TODAY
Hindenburg’s allegations
Hindenburg Research claimed to have conducted a 2-year investigation into the company, interviewing former employees and industry experts, reviewing regulatory and litigation records and financial modelling.
Among its allegations were that it overstated its user counts, understated customer acquisition costs and failed to take action against criminal activity being done using the app.
The report led to the company’s shares falling over 16% this morning. It debuted on the ASX in February 2022 after acquiring Afterpay.

Block (ASX:SQ2) share price chart, log scale (Source: TradingView)
Block response
The company released a short statement on its website in which it denied the allegations and said it would explore legal action against Hindenburg.
‘We are a highly regulated public company with regular disclosures, and are confident in our products, reporting, compliance programs, and controls,’ it said.
Stocks Down Under Concierge gives you timely BUY and SELL alerts on ASX-listed stocks!
With price targets, buy ranges, stop loss levels and Sell alerts too.
GET A 3-MONTH FREE TRIAL TO CONCIERGE TODAY
No credit card needed and the trial expires automatically.
Blog Categories
Get Our Top 5 ASX Stocks for FY25
Recent Posts
Here are 5 ASX stocks vulnerable to AI: Should you sell them?
Let’s take a look at some ASX stocks vulnerable to AI. Because right now, investors are focused on stocks that…
Sovereign Wealth Funds: How do they work and how does Australia’s stack up?
In this article, we look at Sovereign Wealth Funds. They are worth knowing about because they have a bigger role…
When investors are in a risk off mindset: Here are the 5 moves they usually make and why
Israel’s strikes on Iran, and the subsequent responses, led to the typical “risk off” moves professional investors usually make when…