Block Inc., led by Jack Dorsey, is negotiating with New York State regulators regarding compliance with legislative norms relating to reporting and Bitcoin programs.
Negotiations with New York Regulators
On February 24, the company announced the continuation of negotiations with the New York State Department of Financial Services (NYDFS) regarding the Bank Secrecy Act and its anti-money laundering and Bitcoin programs. The company aims to resolve these issues on favorable terms.
Multiple Investigations and Fines
From January 2021 to March 2023, Block Inc. was reviewed by regulators from several US states, revealing deficiencies in the company's AML program. In January, Block agreed to pay an $80 million fine, admitting no wrongdoing. The payment is expected by February 2025. As part of the settlement, the company will employ an external consultant to improve its anti-money laundering program.
Further Regulation and Financial Outcomes
The Consumer Financial Protection Bureau also examined Cash App’s handling of customer complaints, resulting in a $55 million fine, with Block agreeing to repay affected users between $75 and $120 million. Furthermore, the company is involved in a tax dispute with the San Francisco Treasurer regarding Bitcoin-related income.
Block Inc. faces multiple regulatory challenges and settlements, which may significantly impact its financial status.
