Block appears to be squarely in the government’s sights. Prosecutors from the Southern District of New York are reportedly probing extensive compliance lapses at the parent company of Square and Cash App. NBC News says a former Block employee has handed over documents to federal authorities, painting a picture of how the company failed to gather required risk-assessment information from customers and subsequently processed illegal transactions.
The documents allegedly show that Block greenlit multiple crypto transactions involving known terrorist organizations. Furthermore, Square reportedly processed thousands of transfers involving nations under economic sanctions. “From the ground up, everything in the compliance section was flawed,” the whistleblower allegedly told NBC News. “It is led by people who should not be in charge of a regulated compliance program.”
Most transactions allegedly involved credit cards, dollar transfers or Bitcoin and weren’t reported to the govern
