Block Inc, the payments company led by Jack Dorsey, is in negotiations with New York state regulators to resolve allegations related to its Anti-Money Laundering (AML) and Bitcoin programs.
According to a 24 February 2025 filing with the US Securities and Exchange Commission (SEC), Block stated it is engaged in “continuing negotiations” with the New York State Department of Financial Services (NYDFS). This is regarding the issues surrounding compliance with the Bank Secrecy Act (BSA) and its broader AML and Bitcoin programs.
“The company is engaging in conversations with NYDFS to determine whether this matter can be settled on acceptable terms,” the filing noted.
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Block Confirms NYDFS Proposed Settlement Terms In January
Block acknowledged that in January, the NYDFS proposed potential settlement terms. However, details of the settlement were not disclosed. Block said it has set aside a liability for the matter but does not consider it materially significant to its 2024 financial outlook.
The company has faced heightened regulatory scrutiny over the past few years. Between January 2021 and March 2023, Block underwent an investigation by money transmission regulators across multiple US states.
That examination reportedly uncovered deficiencies in the company’s AML compliance, particularly regarding adherence to the BSA.
Jack Dorsey’s Block looks to settle with New York on money laundering claims
“The company is engaging in conversations with NYDFS to determine whether this matter can be settled on acceptable terms,” Block Inc. said in a regulatory filing. pic.twitter.com/kh7MrJraMC
— GasFees.org | Blockchain Gas Fee Tracker (@gasfeesorg) February 26, 2025
In January 2024, Block reached a settlement agreement with several state money transmission regulators. However, New York was notably not part of that deal.
Without admitting or denying wrongdoing, Block agreed to pay $80 million in penalties, with payments scheduled through February 2025. As part of the settlement, the company is required to appoint an independent consultant to assess and improve its AML program.
Additionally, a Compliance Management Committee has been formed to oversee the implementation of corrective actions.
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Block Deals with More Regulatory Hurdles
Beyond the AML-related concerns, Block has been dealing with other regulatory matters. In January, the Consumer Financial Protection Bureau (CFPB) investigated Cash App, Block’s popular payment platform, over its handling of customer complaints and dispute resolutions.
That inquiry led to a $55 million civil penalty and an agreement to pay between $75 million and $120 million in restitution to affected customers.
Separately, Block is facing a tax dispute with the San Francisco Treasurer and Tax Collector, which audited the company’s 2020–2022 tax filings. The audit concluded that additional taxes were owed related to Bitcoin-related revenue.
As reported, Jack Dorsey’s payment firm Block (SQ) has announced a shift in focus, prioritizing the development of equipment for Bitcoin miners and its self-custody crypto wallet.
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Key Takeaways
- Block Inc. is negotiating with New York regulators to settle allegations over its AML and Bitcoin compliance programs.
- The company faces multiple regulatory challenges, including an $80 million settlement with state regulators.
- Block has set aside a liability for the NYDFS matter but considers it immaterial to its 2024 financial outlook.
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