YEREVAN (CoinChapter.com) — Jack Dorsey-led Block Inc. is negotiating with the New York State Department of Financial Services (NYDFS) over allegations tied to its money laundering and Bitcoin program. In a Securities and Exchange Commission (SEC) filing on Feb. 24, 2025, Block confirmed its ongoing discussions with NYDFS.
The company stated,
“The company is engaging in conversations with NYDFS to determine whether this matter can be settled on acceptable terms.”
The filing did not disclose specific details of the allegations or potential settlement amounts.
NYDFS Investigation into Block’s AML Program
The NYDFS investigation focuses on Block Inc.’s Anti-Money Laundering (AML) program and compliance with the Bank Secrecy Act. A previous examination, conducted between January 2021 and March 2023, identified deficiencies in AML procedures.
In January 2025, Block agreed to pay $80 million to settle similar allegations with multiple state money transmission regulators. However, New York was not part of that agreement. As part of the previous settlement, Block committed to hiring an independent consultant to improve its AML program and establishing a Compliance Management Committee.
Block Considers Financial Impact of NYDFS Settlement
In its SEC filing, Block mentioned that it has accounted for potential liabilities related to this matter. The company, however, stated that it does not expect the settlement to significantly impact its 2024 financials.
The January 2025 settlement required Block Inc. to implement stricter AML policies, particularly for its Cash App platform. The company has faced increased regulatory scrutiny over compliance concerns, including Bitcoin-related transactions.
Cash App Faces Separate Regulatory Challenges
Beyond the NYDFS investigation, Block’s Cash App is also under review by the Consumer Financial Protection Bureau (CFPB). In January 2025, the CFPB fined Cash App $55 million over its handling of customer complaints and disputes. Additionally, the company agreed to provide between $75 million and $120 million in restitution to affected users.
Regulatory Scrutiny Extends to Tax Issues
Block is also involved in a dispute with the San Francisco Treasurer and Tax Collector. The city claims the company owes additional taxes on Bitcoin-related revenue from 2020 to 2022. Block has not disclosed the specific amount in dispute but confirmed that it is in discussions with tax authorities.
Block Inc. Executives Sell Shares Amid Regulatory Developments
While Block is engaged in regulatory negotiations, its executives have been involved in stock sales. Jennings Owen Britton, a business lead at Block Inc., sold shares worth $850,000 in February 2025. Similarly, Brian Grassadonia, who oversees Cash App, sold shares valued at $539,000 during the same period.
These transactions were disclosed in SEC Form 4 filings. Block has not commented on whether these sales were related to its ongoing regulatory issues.
Block Inc. Compliance Measures Under Review
Block continues working with regulators to address concerns related to its AML program. The company has increased investments in compliance and risk management while negotiating terms with the NYDFS.
As discussions continue, regulatory agencies will assess whether Block’s updated AML measures meet industry standards. The outcome of these negotiations will determine if Block Inc. faces additional financial penalties or operational restrictions.
