The Consumer Financial Protection Bureau (CFPB) is taking Jack Dorsey’s Bitcoin platform to federal court. The CFPB claims that the platform did not comply with its research requests regarding payment instruments.
Jack Dorsey’s Bitcoin platform is under investigation
The CFPB has taken legal action against Jack Dorsey’s company, Block. The Consumer Financial Protection Bureau alleges that Block’s Cash app did not comply with its research requests regarding payment instruments. Cash App is a popular platform for users to trade their stocks and Bitcoins.
Last Thursday, August 18, the CFPB filed a petition with the U.S. District Court for the Northern District of California. He also requested a civil investigation request.
The CFPB claims that Block must provide all documents and data they request between August 2020-2021. The investigation is about the way Cash App handles complaints and disputes. However, Block expressed his disappointment that the CFPB filed the petition despite regular communication and cooperation. A Block spokesperson told Bloomberg:
We wait weeks for the CFPB to respond to our most recent communication, outlining the scope of our previous responses, setting a suggested timeline for the remainder of the production of materials, and raising additional clarifying questions for the bureau.
CFPB says Block isn’t cooperating enough
The CFPB said it reached out to Block’s advisor several times for document and data requests. They also agreed to extend the deadlines. Despite this, Block was unable to provide documentation for the six specific questions raised by the CFPB.
The bureau also noted that Block has not filed a formal petition to change or set aside the investigation requests. He also added that the full compliance date for the 2020 investigation request is 14 October 2020. Similarly, the 2021 compliance deadline was December 5, 2021. The CFPB noted that Block Inc has not yet provided the exact dates when it will produce the relevant documents. Here’s the CFPB’s petition:
The Bureau can’t sit back as its investigation is hampered by Block’s slow walking. Not attending the meeting meaningfully is an easy reason for staff to follow suit.
About the block
Formerly known as Square, Block also focuses on CEO Jack Dorsey’s long-term faith in Bitcoin. Cash App is a mobile application of the platform that allows money transfers both between users and between users and businesses. The company is currently working on digital music streaming service, payment methods and initiatives.
