Block's Stock Drops 8% Amid Federal Probe into Cash App, Square Transactions

May 1, 2024, 11:45 AM

Federal prosecutors are investigating financial transactions at Block, the parent company of Cash App and Square, following allegations of misconduct. According to NBC News, an ex-employee has accused Block of processing cryptocurrency transactions linked to terrorist groups and handling transactions involving nations under sanctions. This scrutiny, based on information from two people with direct knowledge, has led to a significant drop in Block's stock, with shares falling 8.0% in pre-market trading.