US Prosecutors Probing Transactions at Dorsey’s Block

US Prosecutors Probing Transactions at Dorsey’s Block

US prosecutors are currently delving into the financial transactions of Jack Dorsey’s company, Block, according to a report by NBC News. The investigation, as detailed by sources familiar with the matter, focuses on potential compliance irregularities within Square and Cash App, the main units of the company.

The probe encompasses various concerns, including the alleged failure to gather adequate customer information for risk evaluation, processing of transactions involving countries under economic sanctions by Square, and the handling of cryptocurrency transactions by Block for potentially illicit groups.

In response to these allegations, shares of the company experienced an 8.8% decline. Despite these challenges, a Block spokesperson emphasized the firm’s commitment to maintaining a robust compliance framework, asserting their dedication to adapting practices to confront evolving regulatory landscapes and emerging threats.

One revealing aspect of the investigation is the claim by a former employee that compliance breaches were left unaddressed by the company, with numerous transactions going unreported to the government as mandated. Notably, some of these transactions involved countries like Cuba, Iran, Russia, and Venezuela, with some transactions as recent as last year.

The spokesperson for Block reiterated the company’s steadfast focus on enhancing the safety and security of its systems. They highlighted ongoing efforts to bolster compliance measures and emphasized substantial investments in their compliance program moving forward.

On the other hand, the Southern District of New York declined to provide any comments pertaining to the investigation, further deepening the intrigue surrounding this financial scrutiny on Jack Dorsey’s enterprise.

These developments underscore the importance of transparency and adherence to regulations in the financial realm, serving as a reminder of the critical role compliance plays in safeguarding against illicit activities and ensuring the integrity of financial transactions.

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