Block Fined $40M for Compliance Failures

Block to Pay $40 Million for Compliance Failures

• Block, Inc. will pay a $40 million penalty to the New York State Department of Financial Services.
• The penalty addresses compliance failures in Block’s Cash App platform.
• Weak anti-money laundering practices and inadequate Bitcoin transaction monitoring were identified.
• Over 169,000 suspicious activity alerts accumulated by 2020, with delayed Suspicious Activity Reports averaging 129 days.
• 8,359 accounts linked to a Russian criminal network were discovered in 2022.

Block, Inc., led by Jack Dorsey, faces a $40 million fine due to compliance failures in its Cash App platform. The investigation revealed significant lapses in anti-money laundering practices and monitoring of suspicious Bitcoin transactions.