{"id":126914,"date":"2025-04-10T19:16:16","date_gmt":"2025-04-10T19:16:16","guid":{"rendered":"http:\/\/cryptospotters.net\/?p=126914"},"modified":"2025-04-10T19:16:16","modified_gmt":"2025-04-10T19:16:16","slug":"jack-dorseys-block-fined-40m-for-alleged-crypto-compliance-aml-failures-2","status":"publish","type":"post","link":"http:\/\/cryptospotters.net\/?p=126914","title":{"rendered":"Jack Dorsey&#039;s Block fined $40M for alleged crypto compliance, AML failures"},"content":{"rendered":"<p>Source: Cointelegraph.com NewsDigital payments company Block Inc. has reached a $40 million settlement with New York regulators over alleged compliance misconducts tied to its Cash App platform, Bloomberg reported on April 10.<br \/>\nBlock was fined by the New York Department of Financial Services (NYDFS) following an investigation into Cash App\u2019s Anti-Money Laundering (AML) and cryptocurrency compliance operations, Bloomberg said after reviewing the government agency\u2019s consent order.\u00a0<br \/>\nNYDFS determined that Block allegedly violated consumer protection laws and didn\u2019t conduct proper due diligence on its customers. The company was allegedly too slow in reporting suspicious transactions to regulators and failed to adequately screen so-called \u201chigh-risk\u201d Bitcoin (BTC) transactions.\u00a0<br \/>\nBlock confirmed that it had worked with NYDFS to \u201cresolve the matter principally related to Cash App\u2019s past compliance program.\u201d However, it did not admit to any wrongdoing, according to Bloomberg.\u00a0<br \/>\nBlock, which was founded by internet entrepreneur and Bitcoin advocate Jack Dorsey in 2009, had been negotiating a settlement with the NYDFS since last year, based on filings submitted with the US Securities and Exchange Commission (SEC).<br \/>\nExcerpts of Block Inc.\u2019s February Form 10K filing with the SEC. Source: SECThe NYDFS settlement isn\u2019t the first monetary penalty Block has agreed to pay this year. As Cointelegraph reported, the company paid $80 million in fines to several state regulators over alleged violations tied to its AML program.<br \/>\nRelated: NYDFS chief\u2019s advice for crypto firms: \u2018Never surprise your regulator\u2019<br \/>\nBlock remains in growth mode<br \/>\nDespite getting caught in regulatory crosshairs, Block\u2019s underlying business remained strong at the end of 2024. Companywide revenues increased by roughly 4.5% year-over-year to $6.03 billion as per-share earnings climbed 51% to $0.71.\u00a0<br \/>\nThe other positive takeaway was that Block\u2019s merchant gross payment volume, or the total amount of money processed through its systems, increased by 10% to $61.95 billion.\u00a0<br \/>\nCash App continues to be a source of growth, with the unit recording $1.38 billion in gross profit in the fourth quarter.\u00a0<br \/>\nThe mobile payment service had more than 57 million monthly transacting users in early 2024.\u00a0<br \/>\nDespite reporting strong growth, Block Inc.\u2019s (XYZ) share price has fallen more than 37% this year as part of a marketwide sell-off. Source: Yahoo FinanceCash App users have been able to buy Bitcoin through the platform since at least 2018. In 2023, Cash App integrated crypto accounting software TaxBit, giving users an easier way to track and report their crypto-related taxes.\u00a0<br \/>\nMagazine: Bitcoin heading to $70K soon? Crypto baller funds SpaceX flight: Hodler\u2019s Digest, March 30 \u2013 April 5<a href=\"https:\/\/cointelegraph.com\/news\/jack-dorsey-block-inc-fined-nydfs?utm_source=rss_feed&amp;utm_medium=rss&amp;utm_campaign=rss_partner_inbound\" target=\"_blank\" class=\"feedzy-rss-link-icon\" rel=\"noopener\">Read More<\/a><\/p>","protected":false},"excerpt":{"rendered":"<p>Source: Cointelegraph.com NewsDigital payments company Block Inc. has reached a $40 million settlement with New York regulators over alleged compliance misconducts tied to its Cash App platform, Bloomberg reported on&hellip; <\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5],"tags":[],"_links":{"self":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/126914"}],"collection":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=126914"}],"version-history":[{"count":0,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/126914\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=126914"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=126914"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=126914"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}