Block reaches 964M in a proposed Department of Justice resolution, with the company saying it would pay $764 million to settle charges tied to its anti-money laundering program, according to the source report. The agreement in principle was reached last month, Block said in a Tuesday regulatory filing.
The DOJ would defer charges for three years if Block meets the agreement’s terms. Block said it cannot guarantee the parties will finalize the deal, or that the department will not take legal action if they fail to reach a resolution.
Block reaches 964M in a proposed resolution
Block said it would receive $200 million in credit under the agreement for prior regulatory resolutions. The company has accrued $764 million for the settlement, but warned the final terms could result in losses above that amount.
The company said the DOJ would dismiss the deferred charges with prejudice if Block complies with obligations specified in the agreement. A Justice Department spokesperson said the agency looked forward to sharing more once the matter is fully resolved. A Block spokesperson offered no comment Wednesday beyond the filing.
The proposed agreement follows earlier scrutiny of Block’s controls. In May, Block disclosed that the DOJ had presented terms to resolve the issues, and that Block had made a counterproposal in April.
Earlier reports and regulatory actions
In March 2023, short seller Hindenburg Research published a report alleging weak fraud controls at Cash App. The report claimed the service enabled criminal activity and described duplicate accounts and fraudulent payments. The source does not state a connection between that report and the DOJ action.
Block disputed Hindenburg’s report, calling it factually inaccurate and misleading, and threatened legal action. Hindenburg announced its closure in early 2025. The Securities and Exchange Commission told Block in March that it had ended its investigation and would not pursue an enforcement action, according to the company’s filing.
Other financial enforcement cases have also involved allegations against companies and executives. Grit Daily previously reported on fraud charges over a startup raise, a founder’s securities fraud plea, and a shareholder securities lawsuit. Those cases are separate from Block’s proposed DOJ resolution.
In July, Block agreed to pay $45 million to settle allegations from 46 states that it misled consumers about Cash App’s safety and did not offer users fraud protections. Last year, it agreed to pay $255 million in a settlement with state and federal regulators, including the Consumer Financial Protection Bureau and 48 states, over weak Cash App security protocols that led to consumer fraud losses. Block also paid New York financial regulators $40 million last year in a separate civil enforcement action.
Block did not discuss the DOJ matter during its Tuesday call with analysts about third-quarter results. The company reported net income of $565.6 million, up 23% from the same quarter last year, and revenue of $6.72 billion, up about 10%. It also raised its income forecast for the full year and 2027.
The Tuesday filing does not make the proposed DOJ agreement final. Block said it cannot predict the resolution’s final terms, leaving the parties to complete or abandon the agreement in principle.
