Block reached a deal in principle with the DOJ to defer an AML charge for three years, with about $964M in gross monetary terms and about $764M net to pay.
Key Facts
Block said in its third-quarter 10-Q that it reached an agreement in principle with the DOJ in October to resolve an inquiry through a three-year deferred prosecution agreement.
The DOJ would defer a charge that Block failed to maintain an effective anti-money laundering program in violation of the Bank Secrecy Act.
The deal is expected to carry a gross monetary component of about $964 million and a net payment of about $764 million, which Block has accrued; it still requires a final agreement and court approval.
Block, the parent of Cash App and Square, has reached an agreement in principle with the US Department of Justice to resolve a federal inquiry under a deal deferring an anti-money laundering charge, with a net payment of about $764 million, the company disclosed.
Under the proposed deferred prosecution agreement, the DOJ would defer for three years a charge that Block failed to maintain an effective anti-money laundering program in violation of the Bank Secrecy Act, according to the quarterly report Block filed with the SEC on Tuesday.
"The DPA is expected to set forth a gross monetary component of approximately $964 million and require a net monetary payment of approximately $764 million based on credit for prior regulatory resolutions," Block said in the filing.
Block disclosed an agreement in principle with the DOJ that would require a net payment of about $764 million. Source: CoinMarketCap
What the DOJ Deal Would Require
If Block fully complies with the final DPA during its three-year term, the DOJ will move to dismiss the deferred charge with prejudice, the company said. Block had accrued $764 million for the matter as of Sept. 30.
The resolution still requires a final agreement satisfactory to all parties and court approval. Block said it cannot assure that a final agreement will be reached on those terms or at all, and that it is reasonably possible the final terms could result in losses above the amount accrued.
How the Inquiry Began
Block received inquiries from the SEC and the DOJ shortly after a short seller report was published in March 2023, the filing said. They primarily related to the report's allegations, the company's compliance and risk practices, and related disclosures.
SEC staff told Block in March 2026 that they had concluded their investigation and did not intend to recommend enforcement action. The DOJ presented potential terms for resolving its inquiry the same month, and the two sides reached the agreement in principle in October, according to the filing.
In July, Block also resolved claims from attorneys general in multiple states related to, among other things, Cash App's handling of customer complaints and disputes, for what it called an immaterial amount.
Block's Recent Moves
Block held a Bitcoin investment valued at about $771.9 million at the end of September, the filing shows. The company added Bitcoin Lightning payments to x402, an AI agent payment standard, in September, and moved in February to make a cut of up to 10% of its staff.
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