Block, owner of Cash App, nears $964M deal with Justice Department

Block, the company behind Cash App and Square, is close to a $964 million deal with the U.S. Justice Department. In a filing Tuesday, Block said it would pay $764 million of that amount to resolve charges that its anti-money laundering program was ineffective. Anti-money laundering rules exist to stop criminals from moving dirty money through financial services.

What the deal says

The Justice Department would "dismiss with prejudice the deferred charges" if Block meets the obligations in the agreement. In plain terms, the charges would be dropped for good if Block does what the deal requires. Block has set aside $764 million for the settlement. The material does not explain what the rest of the $964 million covers.

The deal is not final. Block said it "cannot predict the final terms of the resolution." It also said those terms could lead to losses above the $764 million it has already set aside.

How it got here

In March 2023, short seller Hindenburg Research published a report saying Cash App had lax fraud controls and was used for criminal activity. Block called the report "factually inaccurate and misleading." No connection has been stated between the report and the government action. Hindenburg announced its closure in early 2025. In May, Block disclosed that the Justice Department had presented terms to resolve the issues.

This is not Block's first penalty. The company has also faced these outcomes:

• Last year: $255 million with state and federal regulators over weak Cash App security.
• Last year: $40 million to New York financial regulators.
• In July: $45 million to settle claims from 46 states.
• In March: the SEC ended its investigation without an enforcement action.

What it means for users

Cash App reached 60 million monthly active users, up about 1 million over the past quarter. If you use Cash App or Square, expect tighter identity and fraud checks as Block works to meet the terms of the deal. The material does not say what specific changes people will see.

The business keeps growing

Block reported net income of $565.6 million for the quarter, up 23% from a year earlier. Revenue rose about 10% to $6.72 billion. The company raised its income forecast for this year and 2027. CEO Jack Dorsey said Block expects its first revenue from AI tools in the fourth quarter. A company event next week will introduce its new AI products.

What happens next

The key open question is the final terms. Until they are set, the total cost could rise above the $764 million Block has accrued, and the exact obligations Block must meet remain unclear.