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Block Inc. faces a $40M fine after NYDFS flags major AML failures linked to Cash App, impacting 8,000+ illicit accounts.
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Despite compliance issues, Block’s 2024 earnings surged, as Bitcoin and digital payments remain resilient under growing regulatory scrutiny.
Block Inc., the digital payments firm co-founded by Jack Dorsey, has agreed to a $40 million settlement with the New York Department of Financial Services (NYDFS) over significant compliance lapses related to its Cash App platform.
A recent update by Crypto News Flash notes that in a recent interview, Jack Dorsey claimed Bitcoin will reach “at least a million” by 2030. However, the NYDFS investigation revealed that between spring 2021 and fall 2022, Block’s anti-money laundering (AML) and know-your-customer (KYC) protocols were inadequate, allowing users to bypass identity checks and transaction limits.
These deficiencies enabled over 8,000 accounts linked to a Russian criminal network to operate on the platform. As confirmed in a tweet by Mercex, the NYDFS also found issues with reporting suspicious transactions and conducting proper customer due diligence.
🚨Jack Dorsey's Block Inc. faces a $40M fine for alleged compliance and AML failures related to Cash App. The NYDFS found issues with reporting suspicious transactions and customer due diligence. #CryptoRegulations #Block #BTC #Mercex #MercexNews
— Mercex (@mercex_io) April 10, 2025
Regulatory Oversight Intensifies
As part of the settlement, Block will appoint an independent monitor to oversee its compliance improvements. This move underscores regulators’ increasing scrutiny of cryptocurrency operations within financial services.
According to Reuters, earlier this year, Block faced an $80 million fine from 48 U.S. state regulators for similar AML violations—highlighting systemic issues within its compliance framework.
Financial Performance Amid Challenges
Despite regulatory setbacks, Block’s financial performance remains robust. In 2024, the company reported a 4.5% year-over-year revenue increase, totaling $6.03 billion, with per-share earnings rising by 51% to $0.71.
In addition, Cash App—a key revenue driver—contributed $1.38 billion in gross profit in the fourth quarter alone and processed $283 billion in inflows over the year. The platform now boasts over 57 million monthly active users.
Bitcoin Market Dynamics
Recent updates suggest that Bitcoin’s price movements are heavily influenced by macroeconomic factors, including Federal Reserve policies and global economic conditions. Analysts suggest that Bitcoin’s price may remain under short-term pressure due to these external forces.
Thus, Block Inc.’s settlement with NYDFS highlights the critical importance of strong compliance frameworks in the fast-evolving digital payments ecosystem.
As the company works to enhance its AML and KYC procedures, the broader crypto market continues to navigate regulatory pressure and global financial headwinds. Investors and stakeholders will be watching closely to see how these developments impact both Block’s operations and the valuation of digital assets like Bitcoin.
At the time of writing, Bitcoin is trading at approximately $80,769.91, showing resilience amid regulatory scrutiny despite a 1.19% decrease in the past day.
