Block, the company behind Cash App, is set to pay $764 million to end a federal investigation into its anti-money laundering program. The deal still needs a final agreement and court approval. The payment exceeds the $565 million in net income Block reported for the third quarter.
Block agreed in principle in October to pay $764 million to settle a Department of Justice (DOJ) probe of its anti-money laundering program. The company disclosed the deal in its latest quarterly filing with the Securities and Exchange Commission (SEC). It would resolve the matter through a deferred prosecution agreement.
A three-year deferral on the charge
Under the agreement, the DOJ will put off a charge for three years that Block failed to maintain an effective anti-money laundering program in violation of the Bank Secrecy Act. If Block meets the terms during that time, the DOJ will move to dismiss the charge.
The agreement is expected to carry a gross penalty of about $964 million. That drops to about $764 million after credit for earlier regulatory settlements. Block had already set aside the full $764 million as of September 30th.
DOJ and SEC probes began after Hindenburg report
The DOJ and SEC began looking into Block shortly after short seller Hindenburg Research published a report in March of 2023. Hindenburg alleged that Cash App inflated its user numbers by counting duplicate and fake accounts, and that weak identity checks let criminals use the app. Block disputed the findings.
However, the SEC closed its own investigation in March of this year without recommending enforcement action. Separately, Block paid $40 million to New York's financial regulator in April of 2025 over alleged anti-money laundering lapses at Cash App.
Block's Bitcoin gross profit falls 50%
Block posted $3.2 billion in gross profit for the quarter. Cash App gross profit rose 27% to $2.07 billion, while Square gross profit rose 14% to $1.16 billion.
Gross profit from Block's Bitcoin business, by contrast, fell 50% to $52 million after the company cut fees on some Bitcoin transactions on Cash App, Yahoo Finance reports.
Source: The Daily Hodl
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