This is extremely unhelpful speculation, Bob Lee had not been a part of Square/Block for many years before the incident, if this was truly connected to the facilitation of money laundering and fraud, why target an ex-CTO of all people?
The report is about the use of user number fraud and illegal transactions to enable key early insiders to cash out and leave the company in decline.
That said, it looks like most of the accusations in the report are after he left the company.