New York Slaps Block with $40 Million Fine After Crypto Oversight Flaws

The New York Department of Financial Services (NYDFS) said the fine came after an investigation into how the company handled rules around anti-money laundering (AML) and cryptocurrency transactions.

According to Bloomberg, which reviewed the regulator’s consent order, NYDFS found several issues with how Cash App was run. The report said Block failed to properly check the background of its users and did not take enough steps to review risky Bitcoin BTC $85,182.99 transactions.

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Block said it worked with NYDFS to resolve concerns linked to how Cash App used to handle compliance. However, the company did not admit it broke any rules.

Bloomberg noted that the two sides had been working on a settlement since 2024, based on documents filed with the US Securities and Exchange Commission (SEC).

The company, created by Jack Dorsey in 2009, continues to perform well despite the regulatory issues. At the end of 2024, Block reported a 4.5% increase in revenue compared to the previous year, which reached $6.03 billion.

Block’s payment systems processed $61.95 billion in the same period, a 10% increase in total volume. This growth shows the company’s services remain in high demand.

Meanwhile, CLS Global, a company that provides liquidity in crypto markets, was recently fined over $428,000 and banned from operating in US crypto markets. Why? Read the full story.