Block Agrees in Principle to $764 Million DOJ Settlement Over Anti-Money-Laundering Program

Published November 4, 2026, 11:45 AM PKT. Based on Block, Inc. SEC filing dated November 3, 2026 (primary source), and on reporting of that filing by CoinDesk, Reuters and TradingView (secondary sources). The settlement is an agreement in principle, not a final resolution.

Block, Inc., the payments company co-founded by Jack Dorsey that runs Cash App and Square, has agreed in principle to pay about $764 million to resolve a U.S. Justice Department investigation into its anti-money-laundering controls, the company disclosed in a November 3, 2026 SEC filing, CoinDesk reported on November 4. The proposed resolution would defer for three years a criminal charge alleging that Block failed to maintain an effective anti-money-laundering program, as required under the Bank Secrecy Act. The settlement amount is larger than the $566 million profit Block reported for the third quarter, CoinDesk noted, and it lands on a company whose Cash App bitcoin business just reported a 50 percent drop in gross profit.

The $764 million agreement in principle

The agreement was reached in October and disclosed in the November 3 filing, according to CoinDesk, which reviewed the filing. The proposed resolution carries a gross monetary component of approximately $964 million, reduced to $764 million after credits for earlier regulatory settlements, and Block has already set aside the latter amount, CoinDesk reported. Reuters reported that Block reached the agreement in principle with the Justice Department in October to defer the charge for three years, and that the deferred prosecution agreement could result in an expected net payment of roughly $764 million after credits for prior regulatory resolutions. Block shares rose about 7 percent in extended trading after the disclosure, Reuters reported, as the company also raised its full-year gross profit outlook.

A probe that began with a short seller report

The investigation dates to 2023, when the Justice Department and the Securities and Exchange Commission began examining allegations concerning Block compliance practices and related disclosures following a short seller report, CoinDesk reported. The report, by short seller Hindenburg Research, alleged that Cash App inflated its user numbers by counting duplicate and fraudulent accounts, while weak identity checks allowed criminals to use the platform for scams, money laundering and other illicit payments. Block rejected the findings as inaccurate and misleading, CoinDesk reported. The SEC closed its separate investigation in March without recommending enforcement action, according to CoinDesk, and Block quarterly filings record that SEC staff notified the company in March 2026 that it had concluded its investigation and did not intend to recommend an enforcement action. The Justice Department track is the one now headed toward a deferred prosecution agreement.

The New York fine that foreshadowed the deal

Regulators had already penalized Block over the same compliance systems. In April 2025, New York financial regulator fined Block $40 million after finding serious gaps in its compliance systems, CoinDesk reported. The investigation found that a backlog of suspicious transaction alerts had grown from about 18,000 in 2018 to more than 169,000 by 2020. The regulator also found that one of Block screening systems did not automatically block bitcoin transfers to wallets linked to terrorism financing until their exposure exceeded 10 percent, CoinDesk reported. Those findings sit behind the credits that cut the proposed Justice Department resolution from about $964 million gross to about $764 million net, and they explain why the agreement centers on the anti-money-laundering program itself rather than any single transaction.

Bitcoin profit halves as Cash App grows

The same November 3 filing reported third quarter results that beat expectations everywhere except the bitcoin line. Block reported net income of $566 million, up from $462 million a year earlier, on revenue of $6.72 billion, up from $6.12 billion, TradingView reported from the filing. Gross profit rose 22 percent to $3.24 billion, helped by stronger activity across Cash App lending and payments businesses, CoinDesk reported. Cash App generated $2.07 billion in gross profit, up 27 percent, while Square contributed $1.16 billion, up 14 percent, according to TradingView and CryptoBriefing summaries of the report. Block raised its full-year gross profit forecast to $12.63 billion, representing 22 percent growth, Reuters reported.

The bitcoin ecosystem moved the other way. Block reported that its bitcoin ecosystem gross profit fell 50 percent to $52 million in the third quarter, from $104 million a year earlier, while bitcoin revenue declined 11 percent to $1.8 billion, CoinDesk reported. Block attributed the profit decline primarily to its decision to reduce fees on certain bitcoin transactions, CoinDesk reported, and TradingView noted the same strategic fee cut on Cash App bitcoin transactions. The bitcoin ecosystem covers customer purchases of bitcoin within Cash App and bitcoin withdrawal fees, TradingView reported. The contrast is the quarter in one line: the core payments business grew double digits while the bitcoin fee line shrank by design, and the Justice Department settlement, at $764 million, exceeds the entire quarter net income.

What is not settled yet

Nothing in the disclosure makes the resolution final. Reuters reported that the Justice Department resolution remains subject to a final agreement and court approval, and that Block warned the ultimate terms could result in losses exceeding the amount already accrued. CoinDesk likewise described the deal as agreed in principle, reached in October and disclosed in the filing, not as a signed and approved settlement. Readers should also keep the two tracks separate: the SEC closed its investigation in March without an enforcement recommendation, while the Justice Department matter is the one covered by the proposed deferred prosecution agreement, and the three-year deferral period would run from a final agreement, not from the November 3 disclosure. This article is news reporting and is not investment advice.

Sources

• Block, Inc., SEC filing dated November 3, 2026 (Form 10-Q for the quarter ended September 30, 2026, and related earnings disclosure), primary source: agreement in principle with the Justice Department, three-year deferral of a Bank Secrecy Act anti-money-laundering program charge, approximately $964 million gross monetary component reduced to approximately $764 million after credits for earlier regulatory settlements, amount already accrued, final agreement and court approval pending, third quarter net income, revenue, gross profit and bitcoin ecosystem figures
• CoinDesk, Jack Dorsey's Block faces $764 million DOJ settlement as bitcoin profit plunges 50% (November 4, 2026, secondary source: filing review, October agreement date, $964 million gross and $764 million net figures, 2023 probe origin, Hindenburg allegations and Block rejection, SEC March closure, April 2025 New York $40 million fine, alert backlog and 10 percent screening threshold, bitcoin gross profit $52 million from $104 million, revenue $1.8 billion down 11 percent, fee-cut attribution, overall gross profit $3.24 billion up 22 percent)
• Reuters, Block lifts profit outlook on Cash App strength, reaches preliminary DOJ settlement (November 3, 2026, secondary source: October agreement in principle, three-year deferral, expected net payment of roughly $764 million after credits, final agreement and court approval pending, warning that ultimate losses could exceed the accrued amount, shares up about 7 percent in extended trading, full-year gross profit outlook $12.63 billion)
• TradingView News, Block 3Q 2026: Revenue $6.72B, Net income $565.55M, EPS $0.92, 10-Q Summary (November 3, 2026, secondary source: revenue $6.72 billion, net income $565.55 million, diluted EPS $0.92, gross profit up 22 percent, Cash App gross profit $2.07 billion up 27 percent, bitcoin ecosystem gross profit $52 million down 50 percent on the strategic fee cut)
• CryptoBriefing, Block beats Q3 earnings and revenue estimates, raises full-year guidance (November 3, 2026, secondary source: adjusted diluted EPS $1.13 against a $1.02 estimate, Square gross profit $1.16 billion up 14 percent, bitcoin gross profit halved on lower Cash App bitcoin fees, full-year adjusted diluted EPS guidance $4.15)