Tag: Cash App

A federal judge in California has refused to dismiss two lawsuits accusing the U.S. fintech Block Inc. (Square/Cash App) and senior leadership of compliance-related misstatements and oversight failures. The rulings keep an investor class action and a separate shareholder derivative case on track—turning Block’s compliance narrative into a courtroom test of governance, controls, and accountability.

Block, the fintech conglomerate founded by Jack Dorsey and parent company of CashApp and Square, is currently under investigation by federal authorities for alleged violations of U.S. sanctions and other regulatory non-compliance issues within its Square and Cash App units, according to an NBC News investigation. This scrutiny comes amid concerns of "widespread" compliance failures across the company's major divisions.

Block's shares witnessed a remarkable surge of over 20% this week following its impressive growth and profitability announcement in Q4 2023. The FinTech giant, spearheaded by Jack Dorsey, reported a significant $5.77 billion in revenue, surpassing analysts' expectations and closing at $78.39 in after-hours trading on the NYSE on Friday, resulting in a market capitalization nearing $48 billion.

In the wake of recent revelations surrounding Cash App and the U.S. authorities' investigation into allegations of money laundering and the facilitation of illegal offshore gambling activities, a concerning pattern emerges—one that is not limited to the shores of the U.S. FinTelegram has revealed that numerous European financial institutions are acting as payment facilitators for illegal offshore casinos.

U.S. Federal authorities are delving into allegations that Cash App, a widely-used payment application, may have failed to implement effective procedures for verifying the true identity of its users, potentially facilitating money laundering and terrorist financing. This scrutiny follows claims from two whistleblowers, who assert that Cash App and its transaction service providers have conducted insufficient customer due diligence.