Federal prosecutors are now investigating Twitter co-founder Jack Dorsey’s cryptocurrency His company is investigating financial transactions at Block. The investigation focuses on alleged compliance deficiencies at the company’s two main units, Square and Cash App.
A former employee provided documents to prosecutors for the Southern District of New York that purported to show that insufficient information was collected from Square and Cash App customers to assess their risk. The documents also allege that Square processed thousands of transactions involving countries subject to economic sanctions, and that Block processed numerous cryptocurrency transactions for terrorist groups.
Prosecutors interviewed, including credit card transactions, dollar transfers and of Bitcoin Many of the transactions in which he was involved were not reported to the government as required. The former employee alleges that Block failed to correct company processes when alerted to these violations.
The nearly 100-page document provided to NBC News identified transactions, mostly in low-dollar amounts, involving entities in countries subject to U.S. sanctions restrictions, such as Cuba, Iran, Russia and Venezuela, until last year.
“Everything in the compliance department was flawed from top to bottom,” the former employee told NBC News. It is run by people who should not be responsible for a regulated compliance program.” This assessment was echoed by a second person with direct knowledge of Block’s monitoring programs and practices.
“My understanding from the documents is that the deficiencies in compliance were known to Block leadership and the board in recent years,” said Edward Siedle, a former Securities and Exchange Commission attorney who represented the former employee.
In response to the inquiry, a Block spokesperson said:
“Block has a responsible and comprehensive compliance program, and we regularly adapt our practices to meet emerging threats and the evolving sanctions regulatory environment. Our compliance program includes systems, tools and processes for sanctions screening, as well as the investigation and reporting of sanctions matters in accordance with our legal obligations. Continuously improving the safety and security of our ecosystem is a top priority for Block. “We are committed to improving this work as well as continuing to invest significantly in our compliance program.”
*This is not investment advice.
For exclusive news, analysis and on-chain data Telegram our group, twitter our account and YouTube Follow our channel now! Moreover Android And iOS Start live price monitoring now by downloading our applications!