Federal prosecutors in the United States are reportedly investigating Block, a company co-founded by Jack Dorsey and responsible for platforms like Square and Cash App, due to compliance concerns, particularly related to its Bitcoin operations. The investigation is part of a broader effort to regulate the cryptocurrency industry in the country.

According to sources familiar with the matter, federal prosecutors are examining Block's internal processes, including its cryptocurrency transactions. The probe is focusing on potential compliance violations that have allegedly been ongoing for years. Information provided by a former employee has guided the investigation into these issues.

Reports suggest that Block may have facilitated crypto transactions involving terrorist organizations and carried out numerous transactions with countries under economic sanctions like Iran, Russia, Cuba, and Venezuela. It is indicated that the company ignored alerts regarding compliance issues and failed to report many transactions to the government, including those related to Bitcoin.

Despite these allegations, Block has asserted that it maintains a robust compliance program designed to address emerging regulatory challenges and enhance security measures. The company claims to have systems in place for screening transactions, investigating potential sanctions violations, and reporting such issues as required by regulations. They state that their dedication to improving the safety and security of their ecosystem remains a top priority.

No immediate response was provided by Block to Decrypt's request for comment, but the company issued a statement to NBC News emphasizing their commitment to regulatory compliance and ongoing investment in their compliance program. It is essential to conduct thorough research and seek expert advice before making any investment decisions in the cryptocurrency space.