Financial authorities in New York have levied a substantial $40 million penalty on fintech company Block, better known as the creator of Cash App, due to inadequate oversight regarding Bitcoin transactions conducted through its platform. The settlement stems from significant compliance shortcomings within their peer-to-peer money transfer system that highlight deficiencies in anti-money laundering (AML) measures. Investigations revealed a concerning lack of adequate risk assessment for Bitcoin transactions since 2018, culminating in a surge in alerts signaling customer activity without proper evaluation during periods of rapid growth between 2019 and 2020. Block’s struggle to maintain essential internal controls amid increasing transaction volumes further underscores the severity of these shortcomings.