Aave

Bitcoin

Block

<ul>
 <li>A former Block employee allegedly gave documents to prosecutors&nbsp;</li>
 <li>The records revealed many small-dollar dealings with organizations of sanctioned nations.</li>
</ul>
Reports indicate that US federal authorities are looking into Block, Inc., <a href="https://thenewscrypto.com/microstrategy-introduces-decentralized-id-solution-on-bitcoin-network/" target="_blank" rel="noopener noreferrer nofollow">Jack Dorsey’s</a> fintech startup, after the disclosure of papers by a whistleblower that claimed the company’s payment divisions, Square and Cash App, were involved in extensive and persistent compliance breaches.
According to NBC News’ May 1 report, a former <a href="https://thenewscrypto.com/jack-dorseys-block-launches-next-gen-bitcoin-hardware-wallet/" target="_blank" rel="noopener noreferrer nofollow">Block</a> employee allegedly gave documents to prosecutors from the Southern District of New York that showed how Square and Cash App handled thousands of transactions for users in nations hit hard by economic sanctions, as well as cryptocurrency transactions for terrorist organizations.
<h3 class="wp-block-heading" id="h-violations-of-compliance">Violations of Compliance</h3>
Moreover, the records, which NBC News obtained in a scant 100 pages, revealed many small-dollar dealings with organizations from nations hit hard by US economic sanctions, including Cuba, Venezuela, Iran, and Russia.
Furthermore, according to the whistleblower, the government was not informed about the majority of the transactions discussed with prosecutors, which included transactions using credit card, fiat currency, and <a href="http://bitcoin.org" target="_blank" rel="noopener noreferrer nofollow">Bitcoin</a> (BTC).
Also, the former worker said that after being notified of the purported violations of compliance, Block did nothing to fix its procedures. To back up the whistleblowers’ claims, NBC News was informed by a second anonymous source who had “direct knowledge” of Block’s internal procedures.
It was his belief from the records that compliance infractions were “known to Block leadership and the board in recent years,” according to Edward Siedle, the whistleblower’s lawyer and a former <a href="http://sec.gov" target="_blank" rel="noopener noreferrer nofollow">SEC</a> lawyer.
According to NBC News’ interview with a representative from Block, the company has a “responsible and extensive” compliance policy that is continually adjusted to address new risks and changes in the legislative landscape around sanctions.
Highlighted Crypto News Today:
<a href="https://thenewscrypto.com/aave-v4-launch-set-for-2025-whats-outlined-in-the-2030-roadmap/" target="_blank" rel="noopener noreferrer nofollow">Aave V4 Launch Set for 2025: What’s Outlined in the 2030 Roadmap?</a>

US Authorities Investigate Jack Dorsey Led Block Over Compliance Breaches

Table of Contents

TheNewsCrypto

Other articles published on May 2, 2024

Bitcoin Slump Pushes New Whales Underwater: A Rare Opportunity To Buy?

Bitcoin (BTC) Advocate Roger Ver Detained in Spain, Ex-Binance CEO (BNB) Faces Jail Time, XRP Pro...

Crypto Scandal: Idin Dalpour Accused of $43M Fraud in a Ponzi Scheme Involving Bitcoin (BTC)

Ethereum’s (ETH) Mirror Protocol Integrates Farcaster for Enhanced Social Media Engagement

Bitcoin (BTC) Price Forecast Amid Meme Coin Market Revival: Is Now the Ideal Investment Opportunity?

CFI Gains Category 1 FSP License from South Africa’s FSCA: A Major Milestone for Crypto Trading (...

Join our free newsletter for daily crypto updates!