Block Crypto Unit Under Federal Scrutiny in Compliance Probe 🕵️♂️
Federal prosecutors are looking into Block’s crypto unit and working with whistleblowers to investigate the company’s compliance practices. Two sources familiar with the matter shared this information with NBC News recently.
Alleged Compliance Lapses and Questionable Transactions 🧐
- Block’s crypto unit reportedly processed transactions linked to sanctioned countries and terrorist organizations due to inadequate checks.
- Compliance issues extend to Block’s Square and Cash App units, with widespread and long-standing lapses.
- A former Block employee shared that thousands of questionable transactions were not reported to the U.S. Office of Foreign Assets Control (OFAC).
The former workers provided NBC News with more than 100 pages of internal documents showing exchanges with sanctioned countries like Russia and Iran as recently as last year.
Response from Block and Compliance Efforts 🛡️
Block stated it did not intentionally violate international sanctions, but declined to directly address specific compliance failures questioned by NBC News.
- The company mentioned its in-house legal team, external advisors, and consultants are addressing the issue.
- Block assured that it conducts regular sanctions screenings on all its merchants.
Hot Take on Block’s Compliance Investigation 🔥
The scrutiny on Block’s crypto unit highlights the importance of robust compliance measures in the cryptocurrency industry. As a crypto enthusiast, staying informed about regulatory developments and compliance standards is crucial in this rapidly evolving sector. Remember, compliance not only ensures the legitimacy of crypto transactions but also contributes to the overall credibility and trustworthiness of blockchain technologies.
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