A few months ago, I began to advocate for the purchase of Block. Based on (and I hate this word) a synergy of their different product lines, Jack Dorsey, and their general level of proficiency in money. There have been some good moments, up 15% in a short amount of time, and some bad moments, namely 5% swings in either direction that make me feel like I am at a casino. But today, Block really sank my battleship, and now I must ask, do I buy more?

Today, it was reported that Federal prosecutors are investigating Block for failure to monitor their transactions accurately, allowing terrorist groups and sanctioned people/countries to move assets around on their platform. A whistleblower also alleges that Block knew about this after numerous reports of these malfunctions worked their way up the chain of command, but according to this whistleblower, Block chose not to pursue the elimination of this error. The stock was down 8% today, bringing me to a total loss of 10%, closer to my kill zone I try to stick with of about 15%, and I want to buy more so bad; my heart is telling me to snap up more shares, but my brain is telling me no.

First, I am going to try and get in contact with a few people I know, who may know some more about this situation, or at least, have a feel for the level of punishment. There is no formal prosecution, just an active investigation, but it does sound like something Block would do. Cash App, the purported source of these criminal issues, has a reputation for being fairly shady, and Block, a reputation for being lackadaisical with what happens on Cash App. Famously, Cash App is where drug deals happen, scammers set up their accounts, and where bitcoin is often traded, so I could see Block ignoring glaring problems with their regulation. I mean, who could forget that Hindenburg report? Basically, Block (Cash App) has a history of not being the cleanest with the Cash App service, and honestly, I believe there is a 100% chance Block did these crimes this whistleblower alleges, but I am not sure it is a big deal.

Again, it is hard to tell since there is so little information out there, but possible punishments I have seen tossed around by analysts include fines, oversight committees, etc., rather than genuine wrath from the government. But the problem is that, again, there is so little information about the possible transgressions, what a prosecution would look like, or the likelihood that Cash App/Block committed these crimes.

I think I am going to buy more, but I do not feel great about it. Everything about Block tells me that it is a buy. A growth company with really solid infrastructure and a two-sided approach that effectively garners money from consumers and businesses, along with a CEO who seems to know what he is doing. What this investigation seems to reveal, however, is that the team of executives has not matured as much as I had hoped they had, but again, this company should make oodles of money, and I am willing to stick with them until they do. No risk-it, no biscuit.

I am going to buy a teens bit more, but I do not know if I would feel comfortable recommending it to anyone I know.