Jack Dorsey's Block reaches preliminary $764 million settlement with U.S. DOJ
Jack Dorsey's payments company Block has reached a preliminary agreement to pay $764 million to settle a U.S. Department of Justice investigation into anti-money laundering compliance violations. Meanwhile, the company's quarterly gross profit from Bitcoin operations fell by half to $52 million.
The agreement was disclosed on November 3 in a filing with the U.S. Securities and Exchange Commission (SEC). The proposed settlement includes a three-year deferred prosecution agreement over allegations of inadequate anti-money laundering controls.
The total settlement amounts to approximately $964 million, but previously paid regulatory penalties will reduce the company's remaining obligation to $764 million. Block has already set aside that amount, which exceeds its quarterly profit of $566 million.
U.S. DOJ allegations against Block
The investigation began in 2023 following the publication of a report by Hindenburg Research. The research firm accused Cash App of inflating user metrics through duplicate and fraudulent accounts, as well as inadequate customer verification.
Hindenburg alleged that weak controls allowed the platform to be used for fraud and money laundering. Block rejected the allegations, describing the research firm's findings as inaccurate and misleading.
In April 2025, New York's financial regulator fined the company $40 million for deficiencies in its anti-money laundering monitoring systems.
The investigation found that the backlog of unreviewed suspicious transaction alerts had increased from 18,000 in 2018 to more than 169,000 by 2020.
The regulator also identified shortcomings in the screening of Bitcoin transfers to addresses linked to terrorist financing. A separate SEC investigation concluded in March 2026 without recommending enforcement action.
Bitcoin gross profit falls 50% despite business growth
According to the financial report, gross profit from Block's Bitcoin business fell from $104 million to $52 million in the third quarter. Revenue declined 11% to $1.8 billion.
The company attributed the decline primarily to lower fees on certain Bitcoin transactions through Cash App.
Meanwhile, Block's total gross profit increased 22% to $3.24 billion, driven by its payments and lending services.
Amid improved financial results, Block raised its full-year 2026 gross profit forecast. The company also expects to begin generating direct revenue from AI tools in the fourth quarter.
Strong performance across its core businesses supported investor interest in Block shares, which rose in after-hours trading. The company plans to continue expanding its financial services despite persistent economic uncertainty.
Earlier, we reported that Block introduced Dessa, a local AI voice model for businesses and individual users. The technology is designed to process voice requests directly on devices without requiring access to cloud infrastructure.
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