FTC Probes Block Over Frozen Square Accounts Following Staffing Cuts

The Federal Trade Commission is investigating whether Block Inc. violated US consumer protection laws by failing to provide adequate support for frozen or deactivated accounts. The regulatory probe specifically examines if Block's significant staffing cuts severely degraded customer service capabilities across its Square and Cash App ecosystem. Court filings submitted late Wednesday show the agency received more than 1,500 consumer complaints regarding locked accounts. The FTC originally initiated the investigation last year and issued a demand for records in January, escalating this week to seek a judge's order forcing Block to turn over documents.