Block Settles for $40M With New York Over Money-Laundering Violations
The blockchain firm settles with New York regulators, agreeing to an outside monitor to enhance compliance.
Block Inc. has reached an agreement to pay $40 million to settle allegations with the New York Department of Financial Services regarding inadequate management of its money-laundering precautions. The settlement involves appointing an independent monitor to oversee compliance enhancements.
Key Points:
- Block, known for the Cash App, has acknowledged this settlement as the final resolution involving any state-based compliance issues related to the app.
- In the regulator’s view, there had been a lax approach towards high-risk Bitcoin transactions that allowed effectively anonymous activities through their platform.
NYDFS Superintendent Adreienne Harris stated, “The rapid growth of Block’s Cash App absent a robust compliance function created risk and vulnerabilities that violated the rules financial services companies operating in New York must adhere to. The department is taking decisive steps to ensure accountability.”
Though Block does not admit to the allegations, they expressed satisfaction in moving forward to resolve this matter. Since 2018, Block has held a New York BitLicense to conduct its digital asset operations within the state.
