The popular peer-to-peer money app Cash App is currently under a federal probe due to growing concerns about digital money laundering and terrorism. This probe could have significant implications for the app’s users and the broader financial technology industry.
Federal financial regulators are currently exploring two allegations brought forth by whistleblowers. The complaint states that Cash App inadequately vets its users, opening the door to suspected money laundering schemes that could be linked to terrorism and other unlawful activities.
The two whistleblowers filed their complaint with the Financial Crimes Enforcement Network, a unit often tasked with analyzing financial transactions linked to domestic and international crimes. The agency refused to comment on the investigation but said it was also working with other federal agencies on the matter.
Cash App is one of the many peer-to-peer money services that makes sending money to friends or merchants fast and reliable. First introduced in 2012, today, the Cash App has made life easier for many of its users. Our readers typically use Cash App to fund prepaid gambling sites by purchasing vouchers from other players.
While Cash App is not a bank, it has partnered with several banking institutions to provide its services to users. Wells Fargo actually controls most of the money and holds users’ funds in an account so that the company is eligible for FDIC Insurance.
Are Prepaid Debit Cards Linked To Money Laundering?
Cash App and other prepaid cards are not directly linked to money laundering schemes; however, whistleblowers say they are susceptible. P2P money services like Venmo, PayPal, and Zelle are also vulnerable to money laundering schemes.
Can You Use Cash App To Gamble Online?
No, but you can use Cash App to purchase vouchers from other account holders. This process involves transferring money from your Cash App account to the seller’s account in exchange for a voucher, which you can then use to fund your online gambling account. Prepaid vouchers are only available at select sites (Bovada), offering players several advantages, mainly in processing speed.
Online casino and sportsbook sites often allow players to use various payment methods, including digital currencies, traditional banking methods (Visa, MasterCard), and other methods (P2P, Wire Transfers). For most gamblers, banking is one of the most important site features as it can determine how fast they can receive payouts and make deposits.
Prepaid Bonus Options
In addition to offering games and sportsbook odds, online gambling sites often offer bonus options, including welcome bonuses, re-load bonuses, and other rewards. These bonuses can significantly increase your initial deposit and provide additional funds for gambling. However, it’s important to understand the terms and conditions associated with these bonuses, as they often come with wagering requirements and other restrictions.
Before accepting a bonus, it’s crucial to understand that bonus funds often come with wagering requirements that can impact your withdrawals. For casino bonuses, the rollover requirements are typically higher than those for sportsbook bonuses. This knowledge can empower you to make informed decisions when using online gambling sites.