Block Under Intense Federal Scrutiny for Alleged Sanctions Violations and Compliance Failures

U.S. prosecutors are investigating fintech giant Block, focusing on its handling of transactions involving sanctioned nations and terrorist groups, according to multiple reports.

Block, founded by Jack Dorsey, faces allegations of failing to conduct adequate compliance checks across its platforms, Square and Cash App.
Documents from a whistleblower suggest that Block processed transactions with terrorist organizations and countries under U.S. sanctions.
Despite claims of a robust compliance program, internal reviews and whistleblower accounts highlight significant lapses.
The ongoing investigation has caused a noticeable dip in Block's stock price, reflecting investor concerns over potential legal repercussions.
Federal scrutiny intensifies as regulators aim to tighten oversight on fintech operations, particularly concerning anti-money laundering and sanctions compliance.