The US Attorney's Office has begun to investigate the financial transactions of Block, a company co-founded by Twitter (X) creator Jack Dorsey. Authorities found non-compliance at Square and Cash App.

A former Block employee provided documents to the U.S. Attorney's Office for the Southern District of New York revealing that the Square and Cash App platforms processed thousands of transactions for users located in sanctioned countries: Cuba, Iran, Russia and Venezuela. We are talking about credit card transactions, dollar transfers and bitcoin transactions.

The document, presented by an ex-Block employee, emphasizes that the company also violated the rules for collecting customer information. Despite warnings of regulatory violations, Block failed to correct its business processes. Additionally, Block's compliance department lacked managers who could properly monitor compliance with regulations. An external consultant identified about 50 deficiencies in systems for monitoring suspicious activity and checking for sanctions violations.

Block executives commented on the situation, saying the company has a robust regulatory compliance program. It is regularly adapted to take into account the changing regulatory framework. The company strives to comply with sanctions and regulatory requirements, Block management assured.

Let us recall that Block previously announced a significant reduction in personnel as part of the reorganization, which the company plans to complete this year.