Jack Dorsey’s Block fined $40m over Cash App compliance failures

Jack Dorsey’s digital payments company Block Inc. has agreed to a $40 million settlement with the New York Department of Financial Services (NYDFS). The agreement follows allegations of compliance misconduct against its popular Cash App platform, as first reported by Bloomberg.

The settlement follows an NYDFS investigation into Cash App’s Anti-Money Laundering (AML) and cryptocurrency compliance operations, marking another regulatory hurdle for the company founded by the former Twitter CEO and Bitcoin advocate in 2009.

According to a consent order reviewed by Bloomberg, the NYDFS found that Block violated consumer protection laws by failing to conduct adequate due diligence. The agency also alleged that the company was slow to report suspicious transactions to regulators and did not properly screen “high-risk” Bitcoin transactions.

Cash App, which has allowed users to buy Bitcoin since at least 2018, has grown into a significant player in the digital payments and cryptocurrency space, boasting over 57 million monthly transacting users in early 2024.

Block confirmed it cooperated with the NYDFS to “resolve the matter principally related to Cash App’s past compliance program.” However, the company did not admit to any wrongdoing as part of the settlement.

Negotiations between Block and the NYDFS have been ongoing since last year, as disclosed in filings submitted to the U.S. Securities and Exchange Commission (SEC). The settlement requires Block to strengthen its compliance measures, though specific details of the corrective actions were not publicly disclosed.

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This is not the first regulatory penalty Block has faced in 2025. Earlier this year, the company paid $80 million in fines to multiple state regulators over separate allegations of AML program violations.

Block revenue continues to surge

Despite these setbacks, Block’s core business remains robust. In its fourth-quarter earnings for 2024, the company reported a 4.5% year-over-year revenue increase to $6.03 billion, with per-share earnings surging 51% to $0.71.

Cash App contributed $1.38 billion in gross profit during the quarter, underscoring its role as a key growth driver.

Block’s merchant gross payment volume (a measure of the total money processed through its systems) rose 10% to $61.95 billion, reflecting strong adoption of its services. Cash App’s integration of crypto accounting software TaxBit in 2023 has further enhanced its appeal by simplifying tax reporting for cryptocurrency transactions, aligning with the platform’s push to support Bitcoin and other digital assets.

However, Block’s stock has not been immune to broader market pressures. Despite its operational strength, the company’s share price has plummeted over 37% in 2025 amid a marketwide sell-off.

This decline contrasts with the company’s otherwise positive financial trajectory and highlights the challenges of navigating regulatory scrutiny in a volatile economic environment.

The NYDFS settlement underscores the growing regulatory focus on cryptocurrency-related businesses, particularly around AML and consumer protection compliance. NYDFS Superintendent Adrienne Harris has previously emphasised the importance of transparency, advising crypto firms to “never surprise your regulator.”

Block’s case reflects the broader trend of regulators holding fintech companies to stricter standards as digital payments and cryptocurrencies become more mainstream.

For Block, the settlement closes a chapter of regulatory uncertainty while reinforcing the need for robust compliance frameworks. The company’s ability to maintain growth in its Cash App unit and broader payment ecosystem suggests resilience, but ongoing market challenges and regulatory expectations will likely shape its path forward.

As Block continues to innovate in the fintech and crypto spaces, its ability to balance compliance with expansion will be critical to sustaining its position as a leader in digital payments.