What’s going on at Block?
- Block is under the legal microscope, adding to a series of investigations the firm has faced in recent years.
- Considering these circumstances, the question emerges: How Dorsey can adeptly navigate a host of challenges while simultaneously propelling business growth.
Litigation and class actions are common in financial services, but, payments firm Block is feeling the heat.
The Department of Justice has launched an investigation following allegations from a former employee regarding widespread compliance failures within Block’s Cash App and Square, stretching back several years.
According to the ex-employee, “From the ground up, everything in the compliance section was flawed,” adding, “It is led by people who should not be in charge of a regulated compliance program.”
The individual has reportedly provided prosecutors with documents indicating that the business’ mobile payments platform, Cash App, and merchant financial services platform, Square, have been deficient in collecting customer information necessary to assess risks. Furthermore, other documents suggest that Square has processed transactions involving countries under economic sanctions, and Block has facilitated cryptocurrency transactions for terrorist groups.
A loop of allegations and class actions
Block is under the legal microscope, adding to a series of investigations the firm has faced in recent years.…
