After Binance and Coinbase, US authorities are now investigating the crypto business of Jack Dorsey’s payments firm, Block. US authorities have reportedly found compliance violations by the fintech company, which has now launched a deeper investigation into its business practices. For some time now, US authorities have maintained a strict review of companies that deal with or offer crypto-related services. The sector is loosely regulated in the US, and authorities are concerned that cryptocurrencies could be misused for illegal activities such as money laundering and terrorist financing.

Dorsey, the founder and former CEO of X, runs two other companies under Block called Cash and Square. Investigating officers have reportedly collected documents from both units. The documents obtained show that these platforms did not collect enough information about their users before offering them financial services that included crypto-related activities, NBC News reported. said in its report, citing anonymous sources familiar with the matter.

In addition, investigators claim that the Block platform has processed numerous crypto transactions even from nations that are part of the US sanctions list. Investigators allege that Dorsey’s platforms failed to report potentially suspicious credit card transactions and dollar-to-BTC transfers to the US government as required.

It was a former employee working for Dorsey who first alerted US authorities to loopholes in the business operations of Block and its subsidiaries. Documents, printed over a hundred pages, were handed over to US officials by this former Bloc official, the report added. As of now, Dorsey has not addressed the situation, leaving the report neither confirmed nor denied.

Block recently announced that it has completed the creation of a 3nm Bitcoin mining chip that aims to decentralize the supply of BTC mining hardware. The platform already plans to work on a complete 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 that time, this holding was worth $340 million (roughly Rs. 2,818 crore).

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