Block, Parent of Cash App and Square, Faces FTC Probe Over Frozen Accounts

The reported investigation centers on concerns about customers’ access to their accounts and funds. Bloomberg identified the FTC inquiry in an Oct. 8 article, though the full report could not be independently accessed to establish the investigation’s scope, the specific allegations being examined or Block’s response.

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Block, which operates Cash App and Square, provides digital payment and financial services to consumers and businesses.

Consumer complaints involving the company have also appeared in records maintained by the Consumer Financial Protection Bureau. Data compiled from the agency’s public complaint database show that customers have reported problems involving transactions, account management and access to funds in digital wallets.

Those complaints do not establish wrongdoing. The CFPB’s database records allegations submitted by consumers and company responses, rather than verified findings of legal violations.

The FTC has authority to investigate potentially unfair or deceptive business practices, including conduct involving financial services. An investigation does not necessarily result in enforcement action or a determination that a company violated the law.

The reported inquiry places additional attention on how digital payment providers manage account restrictions while addressing fraud prevention, security and customers’ ability to access their money.

Further details about the FTC’s investigation, including whether the agency has sought documents from Block or identified particular business practices for examination, could not be verified from the available reporting.