CoinDesk
Block has agreed in principle to pay $764 million to resolve a U.S. Justice Department investigation into its anti-money-laundering controls. The proposed agreement would defer a criminal charge for three years over allegations that the company failed to maintain an effective program. The settlement exceeds Block's $566 million third-quarter profit.
Why it matters
The proposed resolution has a gross monetary component of about $964 million, reduced to $764 million through credits for earlier regulatory settlements. Block said it has set aside the $764 million. The investigation began in 2023 after allegations about the company's compliance practices and related disclosures, following a report by short seller Hindenburg Research. Block rejected that report's findings as inaccurate and misleading.
New York's financial regulator fined Block $40 million in April 2025 over compliance gaps. Its investigation found that a backlog of suspicious transaction alerts grew from about 18,000 in 2018 to more than 169,000 by 2020. The SEC closed a separate investigation in March without recommending enforcement action.
Market impact
The legal settlement lands as Cash App's bitcoin business generates less profit. Block's bitcoin gross profit fell 50% year over year to $52 million in the third quarter, from $104 million, while bitcoin revenue declined 11% to $1.8 billion. The company attributed the profit drop primarily to lower fees on some bitcoin transactions.
Block's overall gross profit rose 22% to $3.24 billion, supported by growth in Cash App lending and payments. The contrast is central to the business picture: weaker bitcoin trading economics alongside growth in other services, with a major regulatory settlement adding to the company's costs.
Frequently asked questions
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What would the proposed DOJ agreement require Block to pay?
Block has agreed in principle to pay $764 million. The gross monetary component is about $964 million before credits for earlier regulatory settlements.
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What does the proposed three-year deferral mean for the criminal charge?
The agreement would defer a criminal charge for three years over allegations that Block failed to maintain an effective anti-money-laundering program.
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Why did Block's bitcoin gross profit fall 50%?
Block attributed the decline primarily to lower fees on certain bitcoin transactions. Bitcoin gross profit fell to $52 million from $104 million a year earlier.
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How did Block's overall gross profit perform as bitcoin profit declined?
Overall gross profit rose 22% to $3.24 billion in the third quarter, supported by stronger activity in Cash App lending and payments.
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What did New York's regulator find in its review of Block?
The regulator fined Block $40 million in April 2025 and found compliance gaps, including a suspicious-transaction alert backlog that grew from about 18,000 in 2018 to more than 169,000 by 2020.
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