Block Inc. Faces $40 Million Penalty for Cash App Compliance Failures

Financial services company Block, led by Jack Dorsey, will pay a $40 million penalty to the New York Department of Financial Services (NYDFS) for failing to comply with anti-money laundering and virtual currency regulations. The settlement follows an investigation that found weaknesses in Block’s Cash App platform’s customer due diligence, risk-based controls, and transaction monitoring, leaving it vulnerable to criminal exploitation, particularly through anonymous Bitcoin transactions.