2024-05-02
Block Inc. is a publicly traded company
founded by Jack Dorsey.
Block’s services including Square (it
provides infrastructure for companies to build online business), Cash App
(digital wallet), AfterPay (BNPL) and cryptocurrency-related business.
Block recently launched 3-namometer
Bitcoin mining chip in April. The company also develop Bitcoin Lightning Network
to send and receive bitcoins fast and cheap.
Recent report from NBC news indicates
that federal prosecutors are scrutinizing financial transactions at Block, the
parent company of Cash App and Square.
This investigation is part of a broader
examination into whether the company adhered to compliance measures and
properly reported transactions involving countries under economic sanctions.
Allegations have surfaced that Block
processed transactions for entities in nations such as Cuba, Iran, Russia, and
Venezuela, which could have significant legal and regulatory implications.
Prosecutors from the
Southern District of New YorkSquare is collecting information that Square
processed thousands of transactions involving countries under economic
sanctions and Block Inc. processed multiple cryptocurrency transactions for
terrorist groups.
These transactions
involving credit card transactions, dollar transactions and Bitcoin transactions.
The inquiry also includes an assessment
of cryptocurrency transactions that may be linked to terrorist groups, raising
concerns about the robustness of Block's compliance programs.
As the situation unfolds, it will be
crucial for Block to address these issues transparently and ensure that its
operations align with regulations.
Block
spokeperson said Block has compliance program that regularly adapt its practices
to meet regulations.
