Jack Dorsey’s Block faces scrutiny from federal authorities over non-compliant crypto services: NBC News
Quick Take
- An NBC News investigation has revealed fintech firm Block’s Square and Cash App units are being examined by federal prosecutors over alleged sanctions violations and other regulatory non-compliance issues.
- The Jack Dorsey-founded firm’s former employees are in touch with prosecutors as authorities uncover “widespread” compliance failures throughout the company’s two main divisions.
Federal prosecutors are scrutinizing Block’s crypto unit, working with whistleblowers to investigate the company’s compliance practices, two sources familiar with the matter told NBC News on Wednesday.
However, Block’s statement to NBC maintained it did not knowingly violate international sanctions.
The fintech firm declined to directly respond to NBC’s questions about several of its compliance failures. However, Block the company said in a statement that its in-house legal team, outside counsel and consultants are “advis[ing] on the issue and appropriate remediation,” adding that it already conducts regular sanctions screening on all its merchants.
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