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Block Inc., the payments firm led by Twitter co-founder Jack Dorsey, will pay a $40 million civil penalty and appoint an independent monitor to resolve charges from New York regulators over systemic compliance failures tied to its Cash App service. The New York Department of Financial Services (NYDFS) announced the settlement on Thursday, citing what it called “critical gaps” in Block’s anti-money laundering and know-your-customer programs.
Regulators said the company’s weaknesses under the Bank Secrecy Act left Cash App vulnerable to illicit use. Cash App was founded by former Twitter CEO Jack Dorsey under Square in 2009, which later rebranded to Block in 2021. The app, known for its user-friendly interface, allowed users to purchase cryptocurrencies like Bitcoin .
The findings come after a broader internal review at Block uncovered over 8,300 Cash App accounts linked to a Russian criminal network in 2022. The NYDFS added that oversight of Bitcoin transactions on the platform — which began in 2018 — was particularly lacking, as the company expanded rapidly without scaling its compliance framework. “The company’s growth outpaced the compliance controls needed to keep the platform secure,” said Adrienne Harris, Superintendent of Financial Services in New York.
“This should serve as a warning — whether you’re a fintech or crypto platform, you’re not exempt from financial crime regulations.” In January, Block paid another $80 million to settle similar charges with 48 state financial agencies across the U.S.
, bringing the total regulatory cost to $120 million. While Block did not admit to any wrongdoing in Thursday’s agreement, it said the resolution “fully resolves all pending state-level issues” related to money transmission licensing. Cash App , which lets users send money and buy Bitcoin with ease, saw $283 billion in inflows last year and had 57 million monthly users by the end of 2024, according to regulatory filings.
The settlement adds further pressure on large fintech platforms to invest in robust compliance systems as regulators intensify scrutiny on digital financial services — especially those offering crypto alongside traditional payments. SEO Powered Content & PR Distribution. Get Amplified Today.
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