Consumer complaint received 2024-07-23
Product: Money transfer, virtual currency, or money service — Virtual currency
Issue: Fraud or scam — 
Company: Block, Inc. (NC)

In XXXX, I was solicited by someone presenting themselves as representatives of the web-platform XXXXXXXX  ( hereinafter referred to as the Merchant ). There are official warnings against flashwang.com that confirm that it operates illegal. 
Unofficial investigations about the illegal operation of flashwang.com can be also found in a number of sources that are considered more or less reliable. 
Notwithstanding the above, the persons pretended that the web platform and the Merchant were licensed as regulated financial brokers and that they had the required qualification and skills for trading regulated financial tools and providing financial advice to the public. They insisted that by following their advice I would be able to open and maintain a segregated financial account and to make trades on regulated markets. Being an average consumer and without special knowledge in the financial markets, I was made to believe that I was investing in regulated financial tools via a licensed and qualified platform. Making use of my lack of experience and knowledge, the persons acting through the aforementioned ISSUE Fraud or scam HAVE YOU ALREADY TRIED TO FIX THIS PROBLEM WITH THE COMPANY? 
Yes DID YOU REQUEST INFORMATION FROM THE COMPANY? 
Yes WHAT INFORMATION DID YOU REQUEST? 
About the wallet holders DID THE COMPANY PROVIDE THIS INFORMATION? 
No XX/XX/XXXX, XXXX PM Review Complaint https : //portal.consumerfinance.gov/consumer/s/review-complaint? XXXX XXXX platform and/or on behalf of the Merchant requested me to make payments leading me to believe they were funding a segregated financial account. As per explicit request of the aforementioned persons, all payments were to be made in crypto currency and I was advised and instructed to purchase crypto currency from CashApp. I was then advised by the unlicensed Merchant to transfer the purchase crypto to nominated e-wallets, which are assumingly located outside www.cash.app. Acting in good faith and following advice, I made an account with CashApp XXXX, and made series of payments in consideration of purchasing crypto. Total amount of the payments is XXXX XXXX, distributed in multiple transactions, all of them were sent through my e-wallet with CashApp to the following address : XXXX XXXX Each transaction was immediately indicated on the my profile with the unlicensed broker flashwang.com, which, in our opinion, clearly reveals the link between above indicated address ( es ) and the operation of the illegal website of the Merchant. Therefore, I consider any of the above wallets potentially being an integral part of the illegal activity of flashwang.com and/or potentially used for committing fraud and/or money- laundering. However, due to the specifics of the crypto-transactions, as of today, I am not in a position to determine which person ( individual and/or legal entity ) has made use of the above indicated e-wallet in order to facilitate the operation of the activity of the unlicensed broker flashwang.com. According to the FINTRAC Guidance on Record keeping requirements for money services businesses and foreign money services businesses, money service businesses ( MSBs ) and foreign money services businesses ( FMSBs ) have record keeping requirements under the Proceeds of Crime ( Money Laundering ) and XXXX Financing Act ( PCMLTFA ) and associated Regulations. Among others, a record for all transactions exceeding {$1.00}, -- and for all suspicious transaction shall be made full record. With slight deviations in the thresholds and the required information to be recorded, similar regulations are adopted by XXXX and by XXXX ( Recommendation 16 ). It shall be noted with this regard, that according to Section 179 of the XXXX Guidance for a Risk Based Approach, the requirements of Recommendation XXXX apply to XXXX whenever their transactions, whether in XXXX XXXX or VA, involve : ( a ) a traditional wire transfer, ( b ) XXXX XXXX  transfer between a XXXX and another obliged entity ( e.g., between XXXX VASPs or between a XXXX and another obliged entity, such as a bank or other FI ), or ( c ) XXXX XXXX  transfer between a XXXX and a non-obliged entity ( i.e., an unhosted wallet ). On the grounds of the travel rule crypto- exchanges in their capacity as an originator of institutions are put under the obligation to keep record about : ( a ) name and address of the originator and transmitter ; ( b ) the amount of the payment or transmittal order ; ( c ) the execution date of the payment or transmittal order ; ( d ) any payment instructions received from the originator or transmitter with the payment or transmittal order ; and ( e ) the identity of the beneficiarys bank or recipients bank financial institution. Where the counterparty is a non-obliged entity ( i.e. unhosted wallet ), VASPs are still under certain XXXX and XXXX prevention monitoring and control measures ( Sections 203 and 204 of the FATF Guidance for a Risk Based Approach, which also include feasible efforts to collect the information in the above described scope. According to 31 CFR 1010.410 - Records to be made and retained by financial institutions, XX/XX/XXXX, XXXX PM Review Complaint https : //portal.consumerfinance.gov/consumer/s/review-complaint? XXXX XXXX each agent, agency, branch, or office located within the United States of a financial institution other than a bank is subject to the requirements with respect to a transmittal of funds in the amount of {$3000.00} or more. In particular, for each transmittal order that it accepts as a transmittor 's financial institution, a financial institution shall obtain and retain either the original or a microfilm, other copy, or electronic record of the following information relating to the transmittal order : ( A ) The name and address of the transmittor ; ( B ) The amount of the transmittal order ; ( C ) The execution date of the transmittal order ; ( D ) Any payment instructions received from the transmittor with the transmittal order ; ( E ) The identity of the recipient 's financial institution. With this letter and based upon the above-cited guidelines, I believe that CashApp should have collected and stored information about ( A ) the name of the beneficiary wallet holder and ( B ) about the location of the beneficiary wallet ( if it is hosted by an obliged entity ) or confirmation that it is unhosted or hosted by a not obliged entity. Insofar as this information should have been collected from the originator of the payments/ transactions, it is not deemed confidential in the relations between the exchange and me.