Jack Dorsey's fintech firm Block Inc. has agreed to pay a $40 million fine following a settlement with the New York Department of Financial Services (NYDFS) over alleged compliance failures related to its Cash App platform. According to a Bloomberg report, the penalty stems from findings that Cash App’s anti-money laundering (AML) and crypto compliance efforts were insufficient, putting users and regulators at risk.

NYDFS alleged that Block failed to properly vet customers and delayed reporting suspicious transactions. The regulator also flagged the platform’s lack of adequate monitoring for high-risk Bitcoin activity. While Block cooperated with the investigation and resolved the issue without admitting any wrongdoing, this marks yet another regulatory hurdle for the company.

The settlement follows a prior $80 million fine paid by Block earlier this year to other state regulators for similar AML shortcomings. Despite the growing regulatory scrutiny, Block's financial health remains strong. In Q4 2024, the company saw revenues climb to $6.03 billion, a 4.5% increase year-over-year. Earnings per share rose 51% to $0.71, while merchant gross payment volume jumped 10% to $61.95 billion.

Cash App, a key driver of Block’s success, recorded $1.38 billion in gross profit in Q4 and boasted over 57 million active users in early 2024. The platform, which has supported Bitcoin purchases since 2018, also integrated TaxBit in 2023 to help users handle crypto tax reporting more easily.

While regulatory pressures mount, Block continues to expand its digital payment and crypto services — but the spotlight is now firmly on its compliance track record.