Digital Payment Company Block Inc. has reached a $ 40 million negotiations with New York regulators for allegedly misinterpreted in compliance with the cash app platform, Bloomberg reported on April 10.
The block was charged by the New York Department of Financial Services (NYDFS) following an investigation of Cash App’s Anti-Money Laundering (AML) and CryptoCurrency Compliance Operations, Bloomberg Says After reviewing the order of the government agency.
The NYDFS pointed out that the block is said to have violated consumer protection laws and does not carry out the proper diligence of its customers. The company is said to be very slow in reporting suspicious transactions with regulators and failed to screen enough to screen so-called “high-risk” bitcoin (Btc) Transactions.
Block has confirmed that it has cooperated with the NYDFS to “resolve the object mainly related to the previous cash app compliance program.” However, it does not admit to any mistake, according to Bloomberg.
Block, founded by the Internet trader and Bitcoin advocate Jack Dorsey In 2009, has been talking to a negotiation with the NYDFs since last year, based on filings Submitted to the US Securities and Exchange Commission (SEC).
Excerpts of February Form 10K of Block Inc. Source: Sec
The NYDFS negotiation is not the first financial penalty block to pay this year. As Cointelegraph reported, the company Paid $ 80 million in fine in some state regulators of alleged violations tied to the AML program.
Related: NYDFS leader’s advice for crypto companies: ‘Never surprise your regulator’
The block remains in growth mode
Despite being caught in Crosshair regulations, Block’s underlying business remained strong at the end of 2024.
Other positive removal is the amount of merchant gross payment of the block, or the total amount of money processed by its systems, increased by 10% to $ 61.95 billion.
The cash app continues to be a source of growth, with a unit recording $ 1.38 billion in gross profit in the fourth quarter.
The mobile payment service has over 57 million monthly transacting users in early 2024.
Despite reporting strong growth, Block Inc.’s sharing price. (XYZ) has fallen more than 37% this year as part of a market throughout the market. Source: Finance of Yahoo
Cash app users were sold by Bitcoin by platform Since at least 2018. In 2023 the cash app was included Crypto Accounting Software Taxbitthat gives users an easier way to track and report their crypto -related taxes.
