Following Binance and Coinbase, U.S. authorities are also reportedly launching an investigation into the cryptocurrency business of Jack Dorsey’s payment company Block. According to the report, US authorities have identified compliance violations by the fintech company and have now begun a deeper investigation into its business practices. For some time, U.S. authorities have maintained a strict overview of companies that engage in or provide cryptocurrency-related services. The sector is loosely regulated in the United States, and authorities are concerned that cryptocurrencies could be misused for illicit activities such as money laundering and terrorist financing.
Dorsey, the founder and former CEO of X, runs two other companies at Block: Cash and Square. Investigators reportedly collected documents from these two departments. NBC News, citing unnamed sources familiar with the matter, said the documents obtained show the platforms did not collect sufficient information about their users before providing financial services, including cryptocurrency-related activities. .
Investigators alleged that the Block platform processed several cryptocurrency transactions even from countries included in the U.S. sanctions list. Investigators alleged that Dorsey’s platform was failing to report potentially suspicious transactions involving credit cards and dollar-to-BTC transfers to the U.S. government.
It was a former Dorsey employee who first alerted U.S. officials to loopholes in the business operations of Block and its subsidiaries. The report added that the former Bloc employee forwarded more than 100 pages of documents to U.S. officials. At this time, Dorsey has not commented on the situation, neither confirming nor denying the report.
Recently, Block claimed to have completed the creation of a 3nm Bitcoin mining chip that aims to decentralize the supply of BTC mining hardware. The platform now plans to operate on the full Bitcoin mining system.
In February of this year, Dorsey revealed that Block held 8,038 BTC at the end of the fourth quarter of 2023. At the time, the value of this holding was $340 million (approximately Rs. 2,818 crore).
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