US Government would be investigating Block, Inc. for its financial transactions
US prosecutors are investigating the financial technology company after a whistleblower claims it processed thousands of transactions for users in sanctioned countries and terrorist groups.
US federal prosecutors are reportedly investigating Jack Dorsey's financial technology company, Block, Inc., after a whistleblower filed documents alleging ongoing and widespread compliance violations at the company's payments divisions, Square and Cash App.
A former Block employee provided prosecutors in the Southern District of New York with documents that allegedly show Square and Cash App processed thousands of transactions for users in countries subject to economic sanctions, as well as cryptocurrency transactions for terrorist groups, NBC News reported on May 1.
About 100 pages of documents were provided to NBC News, which reported that many transactions were for small dollar amounts and involved entities in countries subject to U.S. economic sanctions, including Iran, Russia, Cuba and Venezuela.
The informant said that most of the transactions discussed with prosecutors, which involved credit card, fiat currency and Bitcoin $BTC transactions, were not reported to the government.
The whistleblower alleged that Block failed to correct its processes when alerted to the alleged compliance violations.
“From the beginning, everything in the compliance section was flawed,” he said.
“It is run by people who should not be in charge of a regulated compliance program.”
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