Block Fined $40 Million by NYDFS

Block, a company founded by Twitter’s Jack Dorsey, has agreed to pay $40 million to the New York State Department of Financial Services (NYDFS).

An investigation revealed “critical gaps” in the company’s anti-money laundering (AML) system, according to an NYDFS press release.

The company failed to implement adequate controls to prevent financial crimes and did not sufficiently vet its customers. Particular risks arose from processing Bitcoin transactions through the Cash App.

The regulator described Block’s procedures as “vulnerable” to anonymous and high-risk operations.

“Compliance functions must keep pace with a company’s growth or expansion. The rapid growth of the Cash App, without a robust compliance system, created risks and vulnerabilities that violated the rules firms providing financial services in New York are required to follow,” said NYDFS Superintendent Adrienne Harris.

The Department emphasized that Block cooperated throughout the investigation and worked on remedies. Under the new agreement, the firm committed to strengthening its compliance system and engaging an independent monitor.

A company representative told The Block that this agreement resolves matters with all U.S. financial regulators. Block has invested significant resources to bring Cash App into compliance with requirements, yet continues to deny the NYDFS findings.

Back in May 2024, media reported on the scrutiny of financial operations within Block’s cryptocurrency divisions.

On February 24, 2025, it became known that the company was in talks with NYDFS regarding issues related to the Bank Secrecy Act and AML programs.