Block Inc. Fined $40 Million for Bitcoin Compliance Failures via Cash App

Block Inc., co-founded by Jack Dorsey, faces a $40 million fine from the NYDFS for failing to properly oversee Bitcoin transactions through Cash App. The fine reflects compliance failures in peer-to-peer money transfers that began in 2018. The anti-money laundering (AML) program was notably inadequate during 2019 and 2020 due to rapid service growth, resulting in transaction alert backlogs and high-risk anonymous transactions. As part of the settlement, Block is required to appoint an independent monitor to ensure compliance, highlighting the need for robust systems in fast-paced fintech environments. NYDFS’s Adrienne Harris emphasized this serves as a warning for firms to scale compliance systems with growth for risk mitigation.