Block Inc, the payment firm led by Jack Dorsey, is currently negotiating with New York state regulators to resolve allegations related to its Anti-Money Laundering (AML) and Bitcoin programs.

According to a filing made on February 24, 2025, with the US Securities and Exchange Commission (SEC), Block expressed that it is involved in “continuing negotiations” with the New York State Department of Financial Services (NYDFS) about compliance issues with the Bank Secrecy Act (BSA) and its broader AML and Bitcoin initiatives.

“The company is engaging in conversations with NYDFS to determine whether this matter can be settled on acceptable terms,” the filing indicated.

Block Acknowledges NYDFS Proposed Settlement Terms in January

Block corroborated that in January, the NYDFS proposed possible settlement terms; however, no specifics regarding the settlement have been made public. The company has set aside a liability for this matter but deemed it not materially significant for its 2024 financial outlook.

Amidst increased regulatory scrutiny over the past few years, between January 2021 and March 2023, Block was investigated by multiple states for money transmission, unveiling deficiencies in AML compliance, particularly regarding the BSA adherence.

In January 2024, the company reached a settlement agreement with several state money transmission regulators, but notably, New York was not included in that deal. Without accepting or denying any wrongdoing, Block agreed to pay $80 million in penalties, scheduled through February 2025, and has to appoint an independent consultant for improving its AML program.

Block Deals with Additional Regulatory Challenges

In addition to the AML issues, Block is also managing other regulatory matters. The Consumer Financial Protection Bureau (CFPB) investigated Block’s Cash App regarding its handling of customer complaints and dispute resolutions. This led to a civil penalty of $55 million, alongside an agreement to pay restitution ranging from $75 million to $120 million to affected customers.

Moreover, Block faces a tax dispute concerning its 2020–2022 tax filings, which revealed additional taxes owed linked to Bitcoin revenue.

As stated, Block’s leadership under Jack Dorsey has shifted focus to emphasize the development of equipment for Bitcoin miners and its self-custody crypto wallet.