Block, the company behind Cash App, has agreed in principle to pay $764 million to resolve a US Justice Department investigation into its anti-money-laundering controls, according to a November 3 SEC filing reported by CoinDesk. The amount exceeds the $566 million profit Block reported for the third quarter.
The agreement, reached in October, would defer for three years a criminal charge that Block failed to maintain an effective anti-money-laundering program under the Bank Secrecy Act. If Block meets the conditions, prosecutors would ask the court to dismiss the charge. The gross monetary component is about $964 million, reduced to $764 million after credits for earlier regulatory settlements, and Block has already set the money aside. Terms still have to be finalized and approved, and Block warns the final cost could be higher.
The probe dates back to 2023, after a Hindenburg Research short report alleged that Cash App inflated user numbers with duplicate and fraudulent accounts, claims Block rejected as inaccurate and misleading. The SEC closed its own investigation in March without recommending action. In April 2025, New York’s financial regulator fined Block $40 million over compliance failures, including a backlog of suspicious-transaction alerts that grew to more than 169,000 by 2020.
Block’s third-quarter results also showed bitcoin gross profit falling 50% to $52 million, which the company attributed mainly to lower fees on certain bitcoin transactions, while overall gross profit rose 22% to $3.24 billion.
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Sources:
CoinDesk: Jack Dorsey’s Block faces $764 million DOJ settlement as bitcoin profit plunges 50%
Crypto Insiders: Bedrijf achter Cash App verwacht €683 miljoen te betalen in witwaszaak
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