Jack Dorsey’s Fintech Company Block Was Fined $40 Million! Here’s Why

Jack Dorsey’s fintech company Block has been fined $40 million by the New York Department of Financial Services (NYDFS) after regulators uncovered widespread compliance failures on its Cash App platform.

Block Fined $40 Million After Russian Gang Abused Cash App Bitcoin Services

The penalty comes after the NYDFS found significant deficiencies in Block’s anti-money laundering (AML) and know-your-customer (KYC) controls, particularly as Cash App expanded its Bitcoin trading services, which went public in early 2018.

According to Reuters, a 2022 internal investigation into Block found more than 8,300 Cash App accounts were linked to a Russian criminal organization. Regulators said the company failed to properly scale its compliance infrastructure as its crypto operations grew.

“This case should serve as a warning. Compliance functions must evolve with the complexity and size of a company’s business, especially when it comes to crypto,” New York Financial Services Superintendent Adrienne Harris said.

This isn’t the first time Block’s compliance protocols have faced criticism. Block disclosed in a 2022 SEC filing that a former employee improperly accessed sensitive data on more than 8 million Cash App users, prompting broader concerns about its internal security controls.

In mid-24, it was reported that US federal prosecutors were investigating whether Block’s platforms, including Square and Cash App, facilitated transactions involving sanctioned countries such as Russia.

The $40 million penalty follows an $80 million settlement with 48 U.S. state regulators in January 2025 over similar compliance failures.

*This is not investment advice.