Block accused of mass compliance failures that saw digi-dollars reach terrorists

US prosecutors are reportedly investigating Block after a former employee supplied around 100 documents alleging systemic compliance lapses in Square and Cash App—such as weak sanctions screening, delayed remediation, and possible transactions tied to terrorists and sanctioned countries (Russia, Iran, Cuba). Block disputes the characterization, citing an extensive and evolving compliance program, independent reviews that identified roughly 50 issues, and continued investment in compliance, while markets reacted with a notable stock dip.