US Authorities Probe Crypto Activities Linked to Jack Dorsey

According to NBC News, federal prosecutors are looking into possible compliance violations at Block Inc. The company’s two main subsidiaries, Square and Cash App, are the focus of the investigation. There have been allegations of inadequate consumer data collection for risk assessment and transaction processing involving sanctioned nations.

Deals with sanctioned countries such as Cuba, Iran, Russia, and Venezuela have generated a lot of attention, especially in light of recent events. Concerns about regulatory compliance are growing as prosecutors examine whether Block enabled bitcoin transactions for terrorist groups.

Company Response

Block, formerly Square, responded through a spokesperson, emphasizing their robust compliance measures. They affirmed ongoing efforts to enhance safety and security within their ecosystem, citing a commitment to adapt to evolving threats and regulatory frameworks.

“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,” stated the Block spokesperson.

In light of Block’s financial performance statement, an inquiry is underway. Using its Cash App, the corporation sold $1.92 billion worth of Bitcoin in the fourth quarter of 2021, making $46 million in profit. Although this was higher than the third-quarter numbers, it was not as high as the second-quarter peak.