NBC reported on Wednesday that U.S. prosecutors are probing Block, a company offering cryptocurrency services co-founded by Twitter’s Jack Dorsey.
Allegations suggest Jack Dorsey’s Block processed transactions linked to sanctioned countries and potentially individuals tied to terrorist activities.
A former employee shared documents during discussions with New York’s Southern District prosecutors, alleging insufficient customer risk assessment. Most transactions, including credit card, dollar transfers, and Bitcoin transactions, were reportedly unreported to the government.
Block purportedly continued facilitating transactions involving sanctioned entities even after learning of their misuse.
Concerns were raised about Block’s compliance department, with claims of unsuitable leadership. Another source echoed these concerns. Block declined to address compliance failures directly but stated its legal team is advising on the issue.
Despite this, Block reported $1.92 billion in Bitcoin sales for Q4 2021, with Dorsey expressing support for Bitcoin’s potential energy benefits.
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