The U.S. Attorney’s Office is examining the financial transactions of Jack Dorsey’s Block.
NBC News reported that federal prosecutors spoke with a former employee about alleged widespread compliance violations at Square and Cash App, the company’s two main divisions.
Prosecutors want to determine whether the company failed to collect enough customer information to assess risks, whether Square processed transactions involving countries subject to economic sanctions, and whether Block processed cryptocurrency transactions for terrorist groups.
Some transactions that interested prosecutors involved sanctioned countries such as Cuba, Iran, Russia, and Venezuela and occurred more recently.
Block’s spokesperson said the company has a responsible and extensive compliance program and regularly adapts its practices to respond to emerging threats and the changing regulatory sanctions environment.
“Continually improving the safety and security of our ecosystem is a top priority for Block. We have been and remain committed to building upon this work, as well as continuing to invest significantly in our compliance program.”
Block’s spokesperson
At the end of February, Block, formerly known as Square, reported $1.92 billion in Bitcoin (BTC) sales for the fourth quarter of 2021. The indicator exceeded the results of the third quarter but did not reach the results of the second quarter.
In the fourth quarter of last year, BTC worth $1.92 billion were sold through the Block Cash App, with profits amounting to $46 million.
Dorsey is also a supporter of BTC, believing that Bitcoin will also lead to an excess of energy worldwide.
