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Cash App Slammed by NYDFS
Block Inc., the digital payments giant founded by Jack Dorsey, has agreed to pay a $40 million fine to the New York Department of Financial Services (NYDFS). The penalty follows an investigation into the company’s popular platform, Cash App, for its alleged poor handling of crypto compliance and anti-money laundering (AML) practices.
What Went Wrong?
NYDFS claims Block failed to properly vet its customers and allowed high-risk Bitcoin transactions to slip through without enough checks. Worse, Cash App was reportedly slow in reporting suspicious crypto transactions to regulators — a major red flag for authorities.
Simply put, Block’s compliance program was not up to New York’s strict standards, especially when dealing with crypto assets like Bitcoin.
No Denial, No Admission
In classic corporate style, Block agreed to the settlement without admitting or denying the accusations. They did, however, cooperate with NYDFS to resolve the matter, focusing on improving their compliance processes moving forward.
This isn’t Block’s first fine either — the company paid $80 million earlier this year to other state regulators over similar compliance issues.
Business Still Booming
Despite the regulatory slap, Block’s business is far from struggling. At the end of 2024, the company reported $6.03 billion in revenue, with earnings jumping 51% year-over-year.
Clearly, while regulators are tightening the screws, the crypto side of Block’s business keeps cashing in.
