The former Treasury Secretary and current Harvard professor abruptly resigned just a week before reports of federal investigation went public. The media cannot allow his feeble attempt to avoid attention work yet again.
FOR IMMEDIATE RELEASE
Contact: Henry Burke, burke@therevolvingdoorproject.org
Washington, D.C. — Revolving Door Project Executive Director Jeff Hauser released the following statement in response to reports about the rampant criminal activity on Block Inc.’s CashApp, and the sudden resignation of longtime Block board member Larry Summers just a week before the investigation was made public.
“Larry Summers served on the board of Block for a decade, only to resign before his term expired with seemingly no explanation a week before investigations about the company’s practices were made public. It is clear to any rational observer that the fig leaf held up by the company – that ‘Summers’ resignation is not a result of any disagreements with the company on any matter relating to the Company’s operations, policies or practices’ is just that. Or perhaps it is true in the most tendentious sense, in that Summers likely agreed with the policies, but didn’t enjoy the prospect of scrutiny or accountability.”
“Larry Summers has been instrumental to Block Inc., having served on the company’s board since June 2011, just two years after it was founded. It beggars belief that his sudden and unexplained departure is as coincidental as he may want it to seem. It mirrors other times that Summers has worked to fly under the radar by leaving companies just before scandals are made public.” continued Hauser.
“Last year, New York Attorney General Letitia James announced a lawsuit against Digital Currency Group and a subsidiary for defrauding investors of $1 billion. Despite having employed Summers for years, including the time period in which many of the allegations transpired, Summers was able to escape significant public scrutiny thanks to a well-timed exit and by scrubbing any mention of his work for DCG from his website. Now he hopes to achieve the same thing by escaping Block in the knick of time.”
“The media cannot allow him to skate on this issue. Summers continued to serve on the board of Block after the publication of Hindenburg Research’s report last year that alleged widespread criminal activity on the CashApp platform, an issue that the whistleblower report would suggest has gone unaddressed. It is clear that Summers continued to work for a company that was undaunted by allegations of money laundering, only to attempt an escape the moment that federal probes threatened to harm his reputation.” said Hauser.
“Summers has made it abundantly clear that he is worried that many are not taking the threat posed by the October 7th attack seriously enough. So why did he turn a blind eye to his own company’s possible involvement in terrorist money laundering? If Summers’ commentary is performative rather than principled and his corporate ties vast and broad, why is the media perpetually seeking comment from him on economic news of the day?,” asked Hauser.
The Revolving Door Project’s Senior Researcher, Henry Burke wrote a short blog explaining Summers’ strange departure from Block Inc. The piece can be read here.
###