Reports indicate that Jack Dorsey’s company, Block, is currently under investigation for compliance issues, particularly related to its Bitcoin operations.
Amid an apparent escalation in regulatory scrutiny of the cryptocurrency industry by American authorities, U.S. prosecutors are reportedly examining Block, the company co-founded by Jack Dorsey responsible for Square and Cash App. According to a report from NBC News published on Wednesday, federal prosecutors have initiated an investigation into the internal operations of the company, including its cryptocurrency business, as indicated by two sources familiar with the matter.
The investigation, as per the report, is purportedly focused on “alleged widespread and long-standing compliance failures,” with guidance from a former employee who disclosed information regarding such issues.
The report suggests that Block may have facilitated cryptocurrency transactions involving terrorist organizations and conducted “thousands of transactions” with economically sanctioned nations such as Iran, Russia, Cuba, and Venezuela.
Additionally, it alleges that the company failed to rectify compliance shortcomings despite being made aware of them and that “most” of the transactions in question, including those related to Bitcoin, were not reported to the government.
Block did not immediately respond to researchers and newsmen’s request for comment. The company, however, provided the following statement to NBC News:
“Block has a responsible and extensive compliance program, and we regularly adapt our practices to meet emerging threats and an evolving sanctions regulatory environment. Our compliance program includes systems, tools, and processes for sanctions screening, as well as investigating and reporting on sanctions issues in accordance with our regulatory obligations. Maintaining our ecosystem’s safety and security is a top priority for Block. We have been and remain committed to building upon this work and continuing to invest significantly in our compliance program.”
