Federal prosecutors have been probing the internal processes of the company—including its crypto business—according to a report from NBC News published Wednesday, citing two sources familiar with the investigation.
Prosecutors are reportedly investigating “alleged widespread and yearslong compliance lapses,” per the report, guided by a former employee who provided information regarding such issues.
Block allegedly handled crypto transactions from terrorist groups, the report claims, and otherwise handled “thousands of transactions” from economically sanctioned countries such as Iran, Russia, Cuba, Iran, and Venezuela.
Furthermore, the report alleges that the company did not address such compliance lapses when alerted, and that “most” of the transactions in question—including those pertaining to Bitcoin transactions—were not reported to the government.
Block did not immediately respond to Decrypt‘s request for comment. The company provided the following statement to NBC News:
“Block has a responsible and extensive compliance program and we regularly adapt our practices to meet emerging threats and an evolving sanctions regulatory environment. Our compliance program includes systems, tools, and processes for sanctions screening, as well as investigating and reporting on sanctions issues in accordance with our regulatory obligations. Continually improving the safety and security of our ecosystem is a top priority for Block. We have been and remain committed to building upon this work, as well as continuing to invest significantly in our compliance program.”
Stablecoin giant Tether has dramatically escalated its enforcement activity after blacklisting 370 blockchain addresses and freezing approximately $514.64 million worth…
Crypto exchange giant Coinbase experienced a major service outage that disrupted trading, transfers, and exchange operations after…
Cross-chain messaging protocol LayerZero has publicly apologized for its handling of the massive Kelp DAO exploitthat drained approximately $292…
Executives from PayPal and Google Cloud said the future of “agentic commerce” — where AI agents autonomously buy goods,…
Crypto exchange giant Kraken is making a major move deeper into the U.S. financial system after its…
A major national security scandal has erupted in Taiwan after prosecutors indicted a Taiwanese news…