U.S. prosecutors are investigating the financial dealings of Jack Dorsey's block.
NBC News reported that federal prosecutors have interviewed former employees about widespread alleged compliance violations at the company's two major divisions, Square and Cash App.
Prosecutors will question whether the company failed to collect enough customer information to assess risk, whether Square processed transactions involving countries subject to economic sanctions, and whether Block processed virtual currency transactions for terrorist groups. I'd like to find out if that's the case.
Some of the transactions that prosecutors were interested in involved sanctioned countries, including Cuba, Iran, Russia and Venezuela, and occurred recently.
A Block spokesperson said the company has a responsible and extensive compliance program in place and regularly adapts its practices to respond to emerging threats and the changing regulatory sanctions environment.
“Continuously improving the safety and security of our ecosystem is a top priority for Block. We continue to make significant investments in our compliance program as well as build on this effort. That's what I've been working on and will continue to do.”
Mr. Block's publicist
At the end of February, the block formerly known as Square reported $1.92 billion in Bitcoin (BTC) sales for the fourth quarter of 2021. This metric exceeded the third quarter results, but fell short of the second quarter results.
In the fourth quarter of last year, $1.92 billion worth of BTC was sold through the Block Cash app for a profit of $46 million.
Dorsey is also a supporter of Bitcoin, which he believes will also lead to an energy surplus around the world.
