Cash App

San Francisco authorities make arrest in stabbing of Cash App creator Bob Lee

Police chief Bill Scott said there was evidence that the suspect and Bob Lee knew each other but did not comment on the possible motive of the attack.

The San Francisco Police Department has arrested a tech executive named Nima Momeni in connection with the April 4 stabbing of Cash App creator Bob Lee.

In an April 13 press conference, the SFPD announced that Momeni was in custody following the execution of search and arrest warrants in San Francisco and Emeryville, a city across the bay. Police chief Bill Scott said that “the evidence shows that [Momeni and Lee] knew each other” but did not comment on the motive of the stabbing, adding that the case was not yet closed.

SFPD Chief Bill Scott addresses reporters on April 13. Source: Facebook

The death of Lee, known by many in the tech world for creating the mobile payment service Cash App, sent shockwaves through the crypto space. The news that Lee knew Momeni suggested the attack was not random, despite some media outlets pointing to San Francisco as a “crime-ridden” city.

“We knew nothing about the facts of this case immediately after it happened — none of us did,” said San Francisco district attorney Brooke Jenkins. “My urging, through Twitter, through the news, was to really press upon not just the media but the residents of San Francisco and everyone else not to draw conclusions about what happened in this case.”

Related: Bitcoin-friendly Cash App integrates TaxBit amid tax-filing season

It’s unclear at the time of publication what charges, if any, Momeni could face in connection to Lee’s death, but San Francisco Mayor London Breed referred to the case as a murder. In addition to developing Cash App, Lee had formally been the chief technology officer of Square — later rebranded as Block — the chief product officer of MobileCoin, and a father of two.

Magazine: US enforcement agencies are turning up the heat on crypto-related crime

Cash App creator dies following stabbing in San Francisco

Bob Lee, the creator of Cash App and the former technology chief at Square, has died after an unknown attacker stabbed him.

Bob Lee, the former chief technology officer of Square and creator of Cash App, has died following a stabbing in San Francisco in the early hours of Tuesday, April 4 local time.

Bill Barhydt, the CEO of crypto wallet company Abra, tweeted on April 5 that Bob Lee “was killed in SF early today,” sharing a report from a local media outlet that reported on Lee’s death but did not name him.

Jack Dorsey also confirmed the death of Lee on the decentralized social media platform Nostr. “It’s real. Getting calls. Heartbreaking,” a screenshot of Dorsey’s post reads.

Dorsey responded to a post asking if Lee’s death was real. Source: Nostr

An April 4 notice from the San Francisco Police Department (SFPD) explained officers attended to a report of a stabbing at approximately 2:35 am local time, finding a “43-year-old adult male victim suffering from apparent stab wounds,” adding:

“Officers rendered aid and summoned medics to the scene. The victim was transported to a local hospital with life-threatening injuries. Despite efforts by first responders and medical personnel, the victim succumbed to his injuries.“

Former UFC fighter, Jake Shields, tweeted on April 5 regarding the killing of a “good friend” in one of the “good” neighborhoods of San Fransisco. He later revealed it was Lee, saying he hoped it “will at least bring attention to these problems” as he was “extremely high profile.“

The SFPD said Lee’s death is being actively investigated as a homicide. No arrests have been made, and those with information are urged to contact the department, which can be done anonymously.

Lee was the chief product officer of MobileCoin, the creator of a privacy-oriented cryptocurrency of the same name.

Related: Yuga Labs co-founder to take leave of absence due to health reasons

He gained prominence in the tech industry for being the first chief technology officer of the Dorsey-founded payments platform Square — later renamed Block — and for creating the popular mobile payment service Cash App.

Lee was a proponent of cryptocurrencies, and said in a statement when he joined MobileCoin in December 2021 that “the traditional financial system leaves behind hundreds of millions of ‘unbanked’ people worldwide and consequently excludes them from the associated benefits.“

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Block’s Q4 Bitcoin revenue down 7% on crypto price decline

Block Inc. outperformed analyst expectations and saw its share price jump in after-hours trading, but its Bitcoin revenue dipped due to price declines.

Jack Dorsey’s payment company Block Inc. reported $1.83 billion of Bitcoin (BTC) revenue from its Cash App business unit in the fourth quarter, representing a 7% fall from the same time last year.

In its Q4 and full-year results announced on Feb. 23, Block attributed the fall in Bitcoin revenue to the decline in BTC price in the year. Bitcoin fell approximately 65% throughout 2022.

This fall in revenue led to a 25% year-on-year drop in Bitcoin gross profit for Cash App, which fell to $35 million in the quarter.

Cash App is a mobile phone payment processing app created by Block, which added support for transactions via the Bitcoin Lightning Network on Oct. 25. It generates Bitcoin revenue by selling Bitcoin to customers through the app.

Cash App gross profit graph from Q4, 2021 to Q4, 2022 Source: Block Inc Q4 shareholder letter

For the full 2022 year, Cash App generated $7.11 billion of Bitcoin revenue and $156 million of Bitcoin gross profit, down 29% and 28% compared to 2021, respectively.

Meanwhile, Block Inc. reported a widened net loss of $114 million for the quarter compared to a loss of $77 million in 2021. Its adjusted earnings before interest, tax, depreciation and amortization (EBITDA) increased 53% to $281 million compared to the same time last year. Total revenue in the quarter was $4.65 billion.

Related: Bitcoin bears attempt to pin BTC price under $23K ahead of this month’s options expiry

The share price of Block jumped in after-hours trading following the earnings report. 

Block Inc. (SQ) share price action over the last day. Source: Barron’s

Some analysts have attributed the jump to the firm’s gross profit growth, which was up 40% in Q4 compared to the prior year, and also beat analyst expectations.

Jack Dorsey-led Block posts $1.5B in Q2 profits, BTC revenue down

Block Inc. posted $1.47B worth of profit in Q2 but BTC trading services profit only accounted for $41 million of that figure, with the firm citing price volatility and a lack of consumer demand.

Former Twitter CEO Jack Dorsey’s digital payments firm Block Inc. saw its year-on-year (YoY) profits soar 29% to $1.47 billion in Q2, though its Bitcoin (BTC) business slumped on decreased customer demand and a fall in Bitcoin prices.

The financial services firm primarily generates Bitcoin revenue by providing BTC trading services via its digital payments application Cash App.

Block Inc. noted the business generated $1.79 billion of Bitcoin revenue in the quarter, down 34% YoY, while Bitcoin gross profit was only $41 million, which suggests it may be a high-cost venture to provide Bitcoin services to its customers.

Block Inc. said the fall in Bitcoin revenue was attributed to “broader uncertainty” in crypto assets, stating:

“The year-over-year decrease in Bitcoin revenue and gross profit was driven primarily by a decline in consumer demand and the price of bitcoin, related in part to broader uncertainty around crypto assets, which more than offset the benefit of volatility in the price of Bitcoin during the quarter.”

However, Block Inc. emphasized that the BTC profit slump doesn’t reflect the broader performance of the business. It also noted that BTC profits will likely fluctuate over time as a result of “changes in customer demand or the market price of Bitcoin.”

The company also noted that it recognized a $36 million impairment loss on its BTC holdings. However, this is likely just a loss on paper.

Under United States accounting procedures, crypto is classified as an intangible asset on balance sheets and companies must report a loss when the price of the asset drops below its cost basis, even if a gain or loss has been realized through a sale during the given quarter.

The company noted that as of June 30, 2022, the fair value of its investment in Bitcoin is $160 million based on market prices.

Related: Interview with Kevin O’Leary: $28K Bitcoin next or lower? | Market Talks with Crypto Jebb

Investors appear un-impressed with Block Inc.’s performance in Q2, however, as the firm’s stock SQ has dipped by 7.42% in after-hours trading to sit at $83 at the time of writing.

Bloomberg suggested this was due to the company reporting lower than expected transaction volume at $52.5 billion, as opposed to the estimated $53.47 billion.

Bitcoin from the Block

Dorsey, the fervent Bitcoin maxi, has been relatively quiet about his plans for digital gold since announcing that Block Inc. was bypassing the Web3 model to build the Bitcoin blockchain-focused Web5 project in June.

Web5 is essentially a decentralized web platform, or DWP, that allows developers to create decentralized web apps via DIDs and decentralized nodes, which will also have a monetary network built around BTC and not smart contract-backed tokenization.


Jack Dorsey and Jay-Z collaborate on Bitcoin Brooklyn educational program

The Shawn Carter Foundation and Cash App will provide informative seminars and classes on Bitcoin to specific New York City residents this summer.

Legendary New York hip-hop artist and producer, Jay-Z has joined forces with the founder of Cash App, Jack Dorsey, to launch “The Bitcoin Academy,” an educational program advocating for the democratic vision that “education is power.”

Exclusively available for residents of the Marcy Project public housing complex in New York City, the scheme will commence June 22 and run until Sept. 7 with options for both in-person and online attendance. The free educational program is designed to enhance access to financial information and promote inclusive opportunities.

Taught by educators Lamar Wilson of the Black Bitcoin Billionaire and Najah J. Roberts of the Crypto Blockchain Plug, the specific details of the lessons are sparse at this time, but topics surrounding the necessity, utility and vision for Bitcoin as well as general financial literature are all expected.

Children aged five to 17 have also been encouraged to join the “Crypto Kids Camp” on two of the Saturday events, while adult attendees will receive a portable WiFi hotspot device, a one-year limited data plan and a smartphone, if required.

Dorsey said he was inspired by the results of Bitcoin initiatives that have supported a small-section of African and Central and South American populations. He stated that the overarching goal is “to prove that making powerful tools more available to people enables them to build greater independence.”

Settling potential fears of favoritism, or maximalism towards the leading cryptocurrency asset, Dorsey expressed that the program aims to go beyond the teaching of Bitcoin to conversations surrounding “long-term thinking, local economies and self-confidence.”

Related: Jack Dorsey on UBI: Bitcoin encourages transparency, long-term thinking

Dorsey and Jay-Z — personal name Shawn Carter — are both vocally conscious figures within the cryptocurrency and Web3 landscape. The former has made strides in spotlighting crypto across the Block and Cash App, while Carter is synonymous with his CryptoPunk avatar and passion for artistic autonomy on the blockchain.

The duo co-own a multi-million-dollar music record label called Tidal, which hinted at a desire to integrate nonfungible tokens (NFTs) onto its streaming service last year.