Block Settles With DOJ After AML Probe and Lower Bitcoin Margin
Block reached a $764 million settlement with the U.S. DOJ after AML and KYC issues. At the same time, profit from bitcoin trading on Cash App was cut in half in the third quarter.
Key Takeaways
- Block reached a proposed $764 million settlement with the U.S. Department of Justice after an AML investigation.
- Cash App's bitcoin ecosystem profit fell 50% in the third quarter to $52 million, while revenue dropped 11% to $1.8 billion.
- Block's total gross profit rose 22% to $3.24 billion, helped by stronger lending and payment services from Cash App.
Jack Dorsey's Block reached a proposed $764 million (€683 million) settlement with the U.S. Department of Justice. At the same time, profit from bitcoin trading on Cash App fell sharply in the third quarter. The company said its broader business kept growing.
Settlement After Compliance Scrutiny
The case centers on allegations of weak anti-money laundering controls. In April 2025, New York's financial regulator already fined Block $40 million (€35.8 million) after finding serious gaps in its compliance systems. It also said a backlog of suspicious transaction reports grew from about 18,000 in 2018 to more than 169,000 in 2020.
The regulator also said one of the screening systems did not automatically block bitcoin transfers to wallets linked to terrorism financing until exposure topped 10%. The proposed DOJ settlement fits into a broader U.S. crackdown, where regulators and prosecutors are taking a harder line on crypto exchanges and other crypto companies with weak AML and KYC processes. That lines up with the broader pressure on crypto companies in the U.S., where regulators are also getting tougher elsewhere on firms with weak controls, such as Coinbase Ireland.
Bitcoin Trading Brings In Less
At the same time, Block made less money from bitcoin on Cash App. Bitcoin ecosystem profit fell 50% to $52 million (€46.5 million) in the third quarter, down from $104 million (€93 million) a year earlier. Revenue dropped 11% to $1.8 billion (€1.6 billion). Block said the decline was mainly because it lowered fees on certain bitcoin transactions.
For investors, that matters because bitcoin trading remains an important extra revenue stream for many payments and fintech companies. When those margins shrink, it becomes easier to see how much of the revenue still depends on transaction fees and trading activity.
Broader Business Keeps Growing
Even with weaker bitcoin results, the rest of the business kept growing. Block's total gross profit rose 22% to $3.24 billion (€2.9 billion), helped by stronger activity in Cash App's lending and payment services. That means pressure on the bitcoin business does not automatically spill over to the whole company.