Understanding the U.S. Investigation into Block, the Jack Dorsey-Owned Company
Recent reports suggest that U.S. prosecutors are delving into the operations of Block, the company co-founded by Jack Dorsey that oversees Square and Cash App. Here’s what you need to know:
Prosecutors Examining Compliance Lapses
- Federal prosecutors are scrutinizing Block’s internal procedures, including its crypto operations, based on insiders’ accounts.
- The investigation appears to focus on alleged compliance shortcomings spanning several years.
- An ex-employee reportedly blew the whistle on these issues.
- Claims of Inadequate Compliance
- Allegations suggest Block facilitated transactions for terrorist groups and processed numerous payments from countries facing economic sanctions, like Iran, Russia, and Venezuela.
- Reportedly, the company failed to rectify these compliance breaches and omitted reporting many transactions, including those involving Bitcoin, to regulatory authorities.
- While Block has yet to comment on the ongoing investigation, the company assured NBC News of its robust compliance program.
- The statement highlights Block’s continuous efforts to enhance its compliance measures and comply with shifting regulatory demands.
- Block emphasizes its dedication to fortifying its security protocols and upholding regulatory standards within its ecosystem.
Block’s Response
Hot Take: What Lies Ahead for Block amid U.S. Probe?
As U.S. prosecutors delve deeper into Block’s operations, uncertainties loom over the company’s future. Stay tuned for developments regarding this investigation and its potential ramifications in the crypto industry.
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