David Britland has located what may be the earliest example of this idea: “It Worked” by Alfred Frangleton, in Magic Wand, Vol. 31 No. 195, Oct./Nov. 1942, p. 153. Frangleton's idea was quite advanced in concept. He tied a thin invisible thread around the block, so that after the cut and force he could spread the block, breaking the thread and leaving the deck unprepared.
Bill Spooner's “Spooner's Specialty Force” also utilized the idea in Ellison Poland's Wonderful Routines Of Magic, 1969, p. 51-53. Michael Weber, in “Sutured Incision” in Pengrove Connection, 1983, pp. 4-5, used four small threaded blocks to achieve a Spectator Cuts the Aces effect.