The post Cash App’s Block Inc Settles for $40 Million Over AML Failures For Crypto Platform appeared on BitcoinEthereumNews.com.

Block, Inc., the company behind Cash App, has reached a $40 million settlement with the New York Department of Financial Services (NYDFS). The penalty follows an investigation into the company’s failure to maintain proper anti-money laundering (AML) compliance. The NYDFS found that Block had significant issues with its AML program, particularly with its handling of Bitcoin transactions and customer due diligence. Block Inc. Settles for $40 Million Over AML Failures According to the NYDFS, Block’s AML compliance program had several critical flaws. The regulator pointed out that Block failed to implement sufficient controls to prevent money laundering and other illicit activities.  The investigation revealed inadequate customer due diligence, especially regarding Bitcoin transactions, which allowed largely anonymous transactions to go unchecked. According to Adrienne A. Harris, the NYDFS Superintendent, “Compliance functions require growth in order to scale with the size and scale of the company.” The department also pointed out that between 2019 and 2020, Block’s extent of growth inevitably brought about a backlog, particularly with transaction alerts and responses, which were not treated immediately. This led to more transaction volume flow, hence compromising the site’s capabilities and making it vulnerable to criminal activities. Previous Settlements and Efforts to Improve Compliance This fine is the second recent sanction of Block for alleged AML failings. Earlier this year, the company settled a similar issue by paying $80 million to 48 state regulators in January. Moreover, another firm, OKX, faced a $1.2M fine in Malta over allegations of breaching AML regulations. Block, in a statement, also noted that “Cash App has invested large amounts of both financial and other capital into compliance remediation and improvements.” However, the company failed to accept the findings of the report produced during the investigation. Instead, it sought to assure customers that it had taken note of the…

---

Filed under: News - @ April 11, 2025 3:24 am