Block Faces $40 Million Penalty for Compliance Failures on Cash App

Jack Dorsey’s fintech company, Block (formerly known as Square), has been hit with a hefty $40 million fine by the New York Department of Financial Services (NYDFS). This penalty stems from regulators finding widespread compliance failures within its Cash App platform. The NYDFS specifically cited inadequate anti-money laundering (AML) and know-your-customer (KYC) controls, particularly as Block’s Bitcoin trading services expanded publicly in 2018.