Jack Dorsey's Fintech Company Block Has Been Fined 40 Million Dollars! Here Is The Reason

Jack Dorsey’s fintech company Block was fined 40 million dollars by the New York Department of Financial Services (NYDFS) after regulators uncovered widespread compliance errors on the Cash App platform.

A $40 Million Fine Imposed on Block Following the Russian Crime Gang's Exploitation of Cash Application Bitcoin Services

The penalty came after the NYDFS identified significant deficiencies in Block's anti-money laundering ( AML ) and know your customer ( KYC ) controls, especially as Cash App expanded its Bitcoin trading services that went public in early 2018.

According to Reuters, an internal investigation conducted by Block in 2022 found that over 8,300 Cash App accounts were linked to a Russian crime syndicate. Regulators stated that the company has not been able to adequately scale its compliance infrastructure with the growth of its crypto operations.

New York Financial Services Superintendent Adrienne Harris said, "This case should serve as a warning. Compliance functions, especially when it comes to crypto, should evolve alongside the complexity and scale of a company's business."

This is not the first incident where Block's compliance protocols have faced criticism. In 2022, Block disclosed in an SEC filing that a former employee had improperly accessed sensitive data of over 8 million Cash App users, raising broader concerns about internal security controls.

It was reported that in the middle of 24, U.S. federal prosecutors are investigating whether Block's platforms, including Square and Cash App, facilitated transactions with sanctioned countries like Russia.

The $40 million penalty came after an $80 million settlement with 48 U.S. state regulators in January 2025 due to similar compliance errors.