Jack Dorsey’s block is under investigation in the US.

Dorsey, the founder and former CEO of Twitter, also runs two other companies named Cash and Square under Block.

Following scrutiny on crypto exchanges like Binance and Coinbase, US authorities are reportedly launching an investigation into the cryptocurrency operations of Jack Dorsey’s payment company, Block. According to reports, the authorities have identified compliance breaches within the fintech company, prompting a deeper inquiry into its business practices. Over time, US authorities have been closely monitoring companies involved in or offering crypto services due to concerns about potential misuse for illicit activities such as money laundering and terrorist financing, given the loose regulations in the sector.

Dorsey, the founder and former CEO of X, oversees two additional companies under Block named Cash and Square. Investigative agents have reportedly obtained documentation from both entities, indicating that these platforms may have failed to gather sufficient user information before providing financial services, including crypto-related activities. Citing anonymous sources familiar with the matter, NBC News reported that the Block platform allegedly processed numerous crypto transactions from countries under US sanctions without reporting them to the US government, as required.

A former employee of Dorsey was the initial source who alerted US officials to potential loopholes in Block’s business operations and its subsidiaries. Documents spanning over a hundred pages were provided to US officials by this ex-Block employee, the report stated. Currently, Dorsey has not responded to the situation, leaving the report unconfirmed.

Block recently announced the successful development of a 3nm bitcoin mining chip, with the goal of decentralizing the supply of BTC mining hardware. The platform intends to proceed with the development of a complete Bitcoin mining system.

Back in February of this year, Dorsey revealed that Block possessed 8,038 BTC by the conclusion of the fourth quarter of 2023. During that period, the value of this holding amounted to $340 million (approximately Rs. 2,818 crore).