Key Takeaways:
- Block Inc. agreed to a $40M settlement with NYDFS over alleged AML and crypto compliance failures on Cash App, including insufficient monitoring of high-risk Bitcoin transactions.
- The company acknowledged cooperation with regulators but did not admit wrongdoing, while also facing separate scrutiny from state Attorneys General on customer dispute handling.
- Despite regulatory challenges, Block posted strong financials in late 2024, with rising revenue, profits, and Cash App growth, even as its stock fell over 37% this year.
Block Inc., the digital payments company founded by Jack Dorsey, has agreed to pay a $40 million settlement to the New York State Department of Financial Services (NYDFS) over alleged compliance failures tied to its Cash App platform.
The NYDFS investigation found that Block’s anti-money laundering (AML) and crypto-related controls were inadequate, particularly in customer due diligence and monitoring of high-risk Bitcoin transactions.
NEW: Superintendent Adrienne A. Harris Secures $40 Million Settlement with Block, Inc. for Inadequate Anti-Money Laundering Program and Virtual Currency Compliance Failures on Cash App Platform
— NYDFS (@NYDFS) April 10, 2025
Details: https://t.co/RKRTaVrOpD pic.twitter.com/rQO5DUQ2Ny
The company also reportedly delayed reporting suspicious activity.
While Block cooperated with regulators, it did not admit to wrongdoing.
The settlement resolves issues highlighted in earlier SEC filings, where Block had disclosed discussions with the NYDFS and noted the matter would not significantly impact its financial statements.
Block is also under scrutiny by multiple state Attorneys General regarding how Cash App handled customer complaints and disputes, with subpoenas issued and talks ongoing.
This fine follows an earlier $80 million penalty in 2024 related to separate AML violations.
Despite these regulatory challenges, Block posted strong financial results, including $6.03 billion in revenue and a 51% jump in earnings per share.
Cash App, a key growth driver, brought in $1.38 billion in gross profit in Q4 2024.
However, Block’s share price has declined over 37% this year amid market volatility.
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