Hindenburg Research Report Effect: Jack Dorsey's Wealth Declines $526 Million

Block Inc. co-founder Jack Dorsey's net worth suffered sharp decline after Hindenburg Research's latest report, which claimed the payments company ignored widespread fraud, according to a Bloomberg report.

It is worth noting that Dorsey's wealth declined by nearly $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, added the Bloomberg report.

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, as per Bloomberg report.

Block witnessed a fall of nearly 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, added Bloomberg report.

It's not the first time that Hindenburg, run by Nathan Anderson, has singled out billionaires and sent their fortunes falling.

The firm released an investigation into India's Gautam Adani and his empire earlier this year, causing his companies' stocks to plummet and erasing tens of billions of dollars from his net worth.