Shares of Block (SQ) just dropped about 8.5%.

All on the news federal prosecutors are examining financial transactions. “Internal documents indicate Block allegedly processed crypto transactions for terrorist groups and Square processed transactions involving nations subject to economic sanctions, according to an NBC News report,” as noted by Seeking Alpha.

Making things a bit worse, a former employee sounded the alert over allegations that “insufficient information is collected from Square and Cash App customers to assess their risks, that Square processed thousands of transactions involving countries subject to economic sanctions and that Block processed multiple cryptocurrency transactions for terrorist groups,” added NBC News.

“From the ground up, everything in the compliance section was flawed,” the former employee told NBC News. “It is led by people who should not be in charge of a regulated compliance program.” 

Here’s hoping things aren’t as bad as they sound for Block.