According to Wu, U.S. federal prosecutors are investigating Block, a fintech company founded by Twitter co-founder Jack Dorsey, for long-standing compliance issues in its main business units Square and Cash App. Former employees handed over about 100 pages of documents to prosecutors in the Southern District of New York, showing that the company did not adequately collect customer information to assess risks, and processed thousands of transactions involving countries under U.S. sanctions, including Cuba, Iran, Russia and Venezuela, as well as processing multiple cryptocurrency transactions for terrorist organizations.
The report pointed out that these transactions were not reported to the government as required, and the company did not make necessary process adjustments after learning of the violations. Former employees commented that Block’s compliance system was “flawed from the beginning.”
