Block’s Bitcoin Business Struggles as DOJ Settlement Reaches $764 Million

Jack Dorsey’s Block is set to pay $764 million under a proposed settlement with the U.S. Department of Justice over alleged failures in its anti-money-laundering controls. The potential payment is significantly higher than the $566 million profit the company reported for the third quarter, as its Bitcoin-related earnings also face mounting pressure.
Block reached the preliminary agreement in October, with details appearing in a November 3 SEC filing reviewed by CoinDesk. The proposed deal would defer a criminal charge for three years concerning allegations that Block failed to maintain an adequate anti-money-laundering program under the Bank Secrecy Act.
The agreement outlines a gross monetary obligation of approximately $964 million. After credits for previous regulatory settlements are applied, the amount is reduced to $764 million. Block disclosed that it has already reserved funds to meet the adjusted payment.
The investigation was launched in 2023 after the Justice Department and Securities and Exchange Commission began reviewing the company’s compliance procedures and disclosures. The scrutiny followed a report from short seller Hindenburg Research, which raised concerns about Block’s business practices. The SEC concluded its separate investigation in March without recommending enforcement action.
Hindenburg alleged that Cash App overstated its user base by including duplicate and fraudulent accounts. It further claimed that weak identity verification procedures made the platform vulnerable to criminals using it for scams, money laundering and other illicit payments.
Block denied the allegations, describing the report as inaccurate and misleading.
In April 2025, New York’s financial regulator imposed a separate $40 million fine on Block after uncovering serious deficiencies in its compliance systems. The regulator said the company’s backlog of suspicious transaction alerts increased from about 18,000 in 2018 to more than 169,000 by 2020.
It also found that one of Block’s screening tools did not automatically block Bitcoin transfers to wallets linked to terrorism financing until exposure exceeded 10%.
The DOJ settlement comes as Block’s Bitcoin operations on Cash App experience a sharp decline in profitability. The company attributed much of the drop to lower transaction fees introduced for certain Bitcoin trades.

Block’s Bitcoin Profitability Takes a Hit

Block’s Bitcoin ecosystem generated $52 million in gross profit during the third quarter, marking a 50% decrease from the $104 million recorded a year earlier. Revenue from the segment also contracted 11% to $1.8 billion.
The company said its decision to reduce fees on selected Bitcoin transactions was the main factor behind the decline in gross profit, as lower charges reduced earnings from Cash App trading activity.
Despite the setback in its Bitcoin business, Block’s overall operations posted stronger results. Total gross profit increased 22% to $3.24 billion, supported by growth in Cash App’s lending and payment services.