Report: US authorities investigating financial transactions of Jack Dorsey’s Block Inc

Federal prosecutors in the United States are said to be investigating Block Inc, the fintech company founded by Jack Dorsey, following allegations of widespread compliance violations. A whistleblower has reportedly provided prosecutors with documents showing that Block’s payment arms, Square and Cash App, processed transactions for users in countries subject to economic sanctions, as well as crypto transactions for terrorist groups. The documents, totaling around 100 pages, reveal numerous small-dollar transactions involving entities in countries such as Iran, Russia, Cuba, and Venezuela. The whistleblower claims that most of these transactions were not reported to the government. The former employee also alleges that Block did not address the compliance breaches when they were brought to its attention. A second anonymous source, claiming to have direct knowledge of Block’s internal systems, has confirmed the allegations. Edward Siedle, a former Securities and Exchange Commission lawyer representing the whistleblower, suggests that Block leadership and the board were aware of the compliance breaches. A spokesperson for Block maintains that the company has a robust compliance program that is regularly updated to address emerging threats and regulatory changes. The investigation into Block is part of a wider crackdown on cryptocurrency firms in the US, with recent legal action taken against Binance and the co-founders of Samourai Wallet. Additionally, Ethereum development firm Consensys has filed a lawsuit against the Securities and Exchange Commission, accusing the regulator of attempting to control the future of cryptocurrency.