Block Inc. Fined $40 Million for Compliance Failures

Block Inc., led by Jack Dorsey, has been fined $40 million by the New York Department of Financial Services due to significant lapses in anti-money laundering and compliance systems on its Cash App platform. The fine addresses regulatory failures in transaction monitoring and customer identification related to Bitcoin transactions, which increased the risk of illicit activities. Block's compliance shortcomings included inadequate flagging of high-risk transactions and insufficient oversight of crypto mixers. As part of the settlement, Block will appoint an independent monitor to oversee improvements in its compliance program over the next year. Block previously agreed to an $80 million settlement with state regulators for similar issues. Additionally, Block is facing a class action settlement for a data security incident, while Apple has settled a separate $20 million lawsuit over alleged defects in certain Apple Watch models.