Block Settles for $40 Million After AML Lapses in Cash App’s Bitcoin Transactions
Block, Inc. (formerly Square Inc.) has agreed to pay $40 million to settle an investigation with New York’s financial regulator, the Department of Financial Services (NYDFS).
The investigation uncovered significant gaps in the company’s anti-money laundering (AML) compliance, particularly related to its Cash App, which facilitates Bitcoin transactions.
Regulatory Issues Over Bitcoin Transactions
The NYDFS revealed that Block’s compliance functions failed to adequately keep up with the company’s rapid growth, leaving the firm vulnerable to money laundering and illicit activities. Among the concerns raised was Block’s insufficient scrutiny of high-risk Bitcoin transactions, which allowed largely anonymous transactions to be processed without proper checks.
Block’s Cooperation with Investigations
Despite the issues, NYDFS noted that Block cooperated with the investigation and has since taken corrective steps. The settlement mandates that Block, Inc. hire an independent monitor to oversee compliance improvements, ensuring that it aligns with the regulatory requirements moving forward.
Implications for Cryptocurrency Companies
This settlement serves as a warning for other cryptocurrency companies about the importance of maintaining robust AML compliance systems, especially as businesses grow and diversify their services. NYDFS has long been active in regulating the crypto industry, having implemented the BitLicense regime in 2015 to enforce stringent rules for digital asset companies operating in New York.
Kosta has reported on cryptocurrency markets and blockchain infrastructure since 2020, bringing over six years of hands-on experience in the crypto industry built through daily tracking of markets, trends, and emerging blockchain developments. Specializing in Bitcoin on-chain analysis, institutional ETF flows, and digital asset price action, his work at Coindoo has been cited by other news agencies and consistently covers market developments with a focus on data-driven reporting across Bitcoin, Ethereum, Solana, and XRP. Over the years, Kosta has contributed to multiple crypto media outlets in different regions, authoring over 6,000 articles across the sector. His reporting spans cryptocurrency markets and the broader fintech industry, tracking not only price action but also the technological and regulatory forces shaping the ecosystem. To support his analysis, Kosta actively leverages on-chain data and metrics from leading platforms such as Santiment, Glassnode, and CryptoQuant, enabling deeper, evidence-based market insights. He believes in the power of transparency and the data that underpins the blockchain ecosystem. His academic background in Marketing Management from Denmark further complements his analytical approach, adding a strong understanding of communication strategy and content positioning to his work.
