Nikolas Sargeant
Block’s mobile payment platform, Cash App, continued to be a profit powerhouse. The unit generated $1.26b in gross profit, a 25% increase year-over-year.
However, the company faces a potential regulatory hurdle. Currently, federal prosecutors are investigating alleged compliance issues at Square and Cash App.
These concerns reportedly center on Block potentially failing to collect adequate customer information. The investigation is also looking at transactions from sanctioned countries and enabling crypto transactions for terrorist groups.
A former employee has claimed that thousands of transactions went unreported, suggesting a significant challenge for Block in the coming months.
Block Unveils Advanced Bitcoin Mining System
Block recently ramped up its Bitcoin mining efforts. It is transitioning from designing individual chips to developing a complete mining system.
The company finalized the design of a cutting-edge 3-nanometer Bitcoin mining chip and is now partnering with a major semiconductor foundry to bring it to life.
