U.S. Prosecutors Scrutinize Crypto Transactions at Jack Dorsey’s Block

The U.S. Attorney’s Office is conducting a thorough examination of the financial dealings at Jack Dorsey’s company, Block, previously known as Square. Federal investigators are investigating whether Block failed to gather adequate customer data to evaluate risks and if it processed transactions connected to countries under U.S. sanctions or to entities involved in terrorism, according to Crypto.

The inquiry highlights transactions with sanctioned nations including Cuba, Iran, Russia, and Venezuela, reflecting a broader scrutiny of compliance practices within the cryptocurrency sector. Block’s spokesperson has affirmed the company’s commitment to maintaining a robust compliance program, which is regularly updated to counter new threats and adhere to evolving regulatory demands.

This probe comes as Block reported substantial Bitcoin sales of $1.92 billion in the fourth quarter of last year through its Cash App, although it saw a decrease compared to earlier quarters. Jack Dorsey, known for his bullish stance on Bitcoin, supports the cryptocurrency not only as an investment but also for its potential to foster excess energy generation globally.

The investigation underscores the increasing attention regulatory bodies are paying to cryptocurrency transactions, especially concerning compliance with international sanctions and anti-terrorism financing norms. As the regulatory landscape continues to evolve, companies like Block are pivotal in shaping industry standards and practices.