Block, the payment processing company founded by Twitter co-founder Jack Dorsey, is facing scrutiny from the US Department of Justice. According to a recent NBC report, the company's crypto division is being investigated for allegedly facilitating crypto transactions that may have been used for terrorist financing and sanctions evasion.
The investigation, which is being conducted in collaboration with whistleblowers, is focusing on Block's compliance practices. The company is accused of having inadequate controls in place, allowing crypto transactions to be processed without proper oversight.
A former Block employee has come forward, providing NBC News with hundreds of documents that allegedly show crypto transactions with companies in sanctioned countries such as Cuba, Iran, Russia, and Venezuela.
Block is considered a highly successful payment company, with its Cash App boasting 56 million active user accounts and generating nearly $22 billion in revenue. The company has a history of embracing crypto, having introduced Bitcoin trading in 2017. Jack Dorsey, Block's CEO, is a well-known Bitcoin enthusiast.
This latest investigation follows a series of high-profile crackdowns on crypto platforms and entrepreneurs by US authorities. In recent months, the US government has taken action against various crypto companies and individuals, including the ban on the Samourai Wallet and the arrest of Roger Ver in Spain.
Some key takeaways from this investigation include:
As the investigation continues, it remains to be seen what consequences Block may face for its alleged failures in this regard.
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