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Feds Probe Jack Dorsey's Block Over Compliance Failures and Bitcoin Practices
Fintech giant Block, founded by Twitter co-creator Jack Dorsey, is under federal investigation for potential violations of regulations and sanctions. The scrutiny reportedly centers on Block's Square and Cash App divisions, with authorities uncovering widespread compliance issues across the company.
Sources familiar with the matter allege that federal prosecutors are examining Block's handling of cryptocurrency transactions. Specifically, the company is suspected of processing crypto transactions linked to sanctioned individuals and organizations due to inadequate compliance checks.
However, the crypto probe appears to be just one facet of a broader investigation. NBC News reports that whistleblowers are aiding prosecutors in uncovering "widespread and yearslong compliance lapses" at Square and Cash App.
The exact nature of the additional compliance failures remains unclear, but the investigation casts a shadow over Block's business practices. Jack Dorsey, a prominent figure in the tech industry and a vocal advocate for Bitcoin, has yet to comment on the investigation.
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