Block (Square) Aktie News

Block, owner of Cash App and Square, is reportedly facing a Department of Justice investigation. Federal prosecutors are in discussions with an ex-employee about allegations of widespread compliance failures at Cash App and Square going back years, NBC News reported Wednesday (May 1), citing unnamed sources.

Block is reportedly the subject of a federal probe into its compliance policies. The report says former employees have provided prosecutors documents that suggest violations of U.S. sanctions and antiterrorism regulations.

Block (NYSE: SQ ) stock is down more than 8% in the afternoon session on news that federal prosecutors are probing financial transactions at the fintech company. Specifically, early reports indicate that prosecutors are considering certain crypto transactions that may have ties to terrorist groups.

Areas under investigation include whether the company failed to gather sufficient information on customers to assess risks, and if processed transactions involved countries subject to economic sanctions.

Twitter co-founder Jack Dorsey's fintech company Block Inc (NYSE:SQ) is being examined by Federal prosecutors for compliance lapses within its Square and Cash App platforms. According to an NBC report citing “two people with direct knowledge of the contacts”, a former employee held discussions with prosecutors from the Southern District of New York.

U.S. prosecutors are examining financial transactions at Block , NBC News reported on Wednesday, citing two people with direct knowledge of the matter.

Square stock tumbled on a report federal prosecutors are probing financial transactions at parent Block involving Cash App and bitcoin.

The need for greater computing power and decentralization has spawned the demand for blockchain technology stocks. Blockchain technology enables users to store data on its public ledgers.