Block Inc. Pays $40 Million to Resolve NYDFS Compliance Violations

Block Inc., led by Jack Dorsey, has agreed to pay a $40 million settlement to the New York Department of Financial Services (NYDFS) for failing to comply with anti-money laundering regulations. According to the NYDFS, Block’s internal systems were inadequate and did not adequately prevent money laundering or criminal activities, resulting in vulnerabilities within its customer due diligence processes. The department highlighted specific concerns about the company’s handling of Bitcoin transactions, which allowed for many anonymous transactions to evade scrutiny.