Block DOJ deal: $764M net over Cash App AML program

At a glance

Block said it reached an agreement in principle with the US Department of Justice (DOJ) in October to resolve a probe into Cash App’s anti-money laundering program, with a net payment of about $764 million, according to its quarterly filing.
The deal is not final. It still needs a signed agreement and court approval, the company said.

Block, the owner of Cash App and Square, disclosed the Block DOJ deferred prosecution agreement in its 10-Q filing for the third quarter, published on Tuesday after the US market close.

Deal terms

Under the proposed agreement, the DOJ would defer for three years a charge that the company “failed to maintain an effective anti-money laundering program in violation of the Bank Secrecy Act,” according to the filing. If Block complies for the full term, prosecutors would move to dismiss the charge with prejudice, the company said.

The agreement is expected to set a gross monetary amount of about $964 million, according to the filing. Block expects to pay about $764 million net, after credit for earlier regulatory settlements, and had set aside that amount as of 30 Sep, it said. Both figures appear in the filing, which explains why reports have cited either number.

“The resolution remains subject to reaching a final agreement satisfactory to all parties and court approval,” the company said in the filing. “The Company has accrued $764 million for this matter as of September 30, 2026.”

Block said the final terms could result in losses above the amount accrued. The DOJ first presented potential terms in March 2026, the filing said. In the same month, staff at the Securities and Exchange Commission (SEC) told Block they did not intend to recommend enforcement action over a related inquiry, it said.

Block shares rose 7% in extended trading after the results, which included a higher full-year gross profit forecast, Reuters reported.

Bitcoin at Block

Revenue from Block’s bitcoin business fell to $1.80 billion in the quarter from $2.02 billion a year earlier, according to the filing. The company held about 9,237 bitcoin as a long-term investment on 30 Sep, valued at $771.9 million, after adding 120 in the quarter, it said.

Context

In April 2025, New York’s Department of Financial Services ordered Block to pay $40 million and appoint an independent monitor over Cash App’s compliance controls, Electronic Payments International reported.

Coinbase reported Coinbase’s third-quarter results on 30 Oct, as CryptoWatchDesk reported. Among corporate bitcoin holders, see Strategy’s latest purchase. On the Bank Secrecy Act side, FinCEN withdrew its crypto-mixing proposal in October.

The DOJ has not published the agreement. The next step is a final text and a court hearing, for which no date has been given.

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This article is for information only and is not investment advice.