• Block could pay $764 million to settle DOJ allegations of Bank Secrecy Act violations
• Proposed agreement would defer criminal charges for three years, subject to compliance
• Company expects a $200 million credit for previous regulatory resolutions
• Final settlement remains uncertain, with potential additional financial losses
• Cash App has faced multiple regulatory penalties involving fraud prevention and security controls
• Third-quarter revenue rose approximately 10% to $6.72 billion
• Cash App reached 60 million monthly active users

Block could pay $764 million to settle allegations that it violated the Bank Secrecy Act through inadequate anti-money laundering controls, under an agreement in principle reached with the US Department of Justice (DOJ).

The proposed settlement, disclosed in the payments company's latest quarterly regulatory filing, would see the DOJ defer criminal charges for three years, provided Block complies with specified obligations.

If the company meets those requirements, the department would subsequently dismiss the charges with prejudice, preventing them from being brought again.

However, Block emphasized that the agreement has not been finalized and warned that the eventual financial consequences could exceed its current provisions.

The company said it "cannot provide any assurance that a final agreement will be reached on the terms described above or at all, or that the DOJ will not ultimately take legal action against the Company should the parties not finalize a resolution."

Block has accrued $764 million for the proposed settlement, although it expects to receive a $200 million credit relating to previous regulatory resolutions.

The company acknowledged that final settlement terms could result in additional losses beyond the amount already recorded.

A Block spokesperson declined to comment beyond the regulatory filing. The DOJ said it "looks forward to sharing more once the matter is fully resolved."

The potential settlement follows several years of scrutiny surrounding financial crime prevention and consumer protection at Block's Cash App platform.

In March 2023, short seller Hindenburg Research accused the company of systematically disregarding anti-money laundering and know-your-customer requirements.

Its investigation alleged that weak controls enabled fraudulent transactions and duplicate accounts, although Block rejected the findings as "factually inaccurate and misleading."

No connection has been established between Hindenburg's allegations and the DOJ investigation. Hindenburg subsequently closed in early 2025.

Block disclosed in May that the DOJ had proposed settlement terms and that the company had submitted a counterproposal in April.

Separately, the Securities and Exchange Commission informed Block in March that it had closed its investigation without pursuing enforcement action.

The company has nevertheless faced substantial penalties from other authorities.

In July, Block agreed to pay $45 million to resolve allegations brought by 46 states concerning misleading representations about Cash App's security and inadequate consumer fraud protections.

Previous settlements included $255 million with federal and state regulators over deficient Cash App security arrangements and a separate $40 million penalty imposed by New York financial regulators.

The latest DOJ development comes as Block reports stronger financial performance and continued expansion of its payments ecosystem.

Third-quarter net income increased 23% year over year to $565.6 million, while revenue rose approximately 10% to $6.72 billion.

Cash App gained approximately one million monthly active users during the quarter, bringing its total to 60 million.

Block also raised its earnings outlook, forecasting gross profit growth of 22% for 2026 and at least 15% in 2027.

TD Cowen analyst Bryan Bergin described the quarter as among the company's "strongest recent performances," highlighting improvements across Square, Cash App and lending activities.

Founder and CEO Jack Dorsey also indicated that newly introduced artificial intelligence products would begin generating revenue during the fourth quarter.

Despite these commercial gains, the proposed DOJ settlement highlights the continuing financial and reputational consequences of alleged weaknesses in financial crime compliance.