Block Reaches $764M DOJ AML Deal in Principle

TL;DR

• Block reached an agreement in principle with the DOJ for a deferred prosecution agreement carrying a net payment of approximately $764 million, subject to final agreement and court approval.
• The proposed DPA would defer for three years a charge alleging failure to maintain an effective anti-money-laundering program under the Bank Secrecy Act.
• Block reported bitcoin ecosystem gross profit of about $52 million, down from roughly $104 million a year earlier.

Block reached an agreement in principle with the U.S. Department of Justice to resolve an anti-money-laundering investigation through a deferred prosecution agreement carrying a net payment of approximately $764 million. In its third-quarter filing, the company said the proposed deal remains subject to a final agreement and court approval. The $764 million resolution is not yet final, while Cash App provides access to Bitcoin.

Block Faces Three-Year Deferred Prosecution Agreement

The DOJ inquiry followed a March 2023 short-seller report and focused on allegations involving Block’s compliance practices and related disclosures. In March 2026, the DOJ presented settlement terms, and the parties reached an agreement in principle in October. The proposed DPA would defer for three years a charge alleging that Block failed to maintain an effective AML program under the Bank Secrecy Act, within the U.S. crypto compliance environment.

The agreement carries a gross monetary component of approximately $964 million. Credits for earlier regulatory resolutions would reduce Block’s net payment to about $764 million, an amount accrued as of September 30. If Block complies fully during the three-year DPA, the DOJ would seek dismissal with prejudice of the deferred charge. Block has recognized the expected $764 million cost, although final resolution still depends on completing the agreement and obtaining court approval, alongside its federal supervision ambitions.

The filing shows that the SEC closed its investigation in March 2026 without recommending enforcement action. The DOJ matter continued and now centers on the proposed DPA. Block cautioned there is no assurance a final agreement will be reached and said prosecution could follow if a DPA were later violated. The disclosure describes a negotiated path toward resolution rather than a completed settlement, a distinction relevant when comparing the case with other AML enforcement actions.

Block disclosed the legal development alongside weaker results from its bitcoin ecosystem. Third-quarter bitcoin ecosystem revenue fell 11% year over year to approximately $1.80 billion, while gross profit dropped to about $52 million from $104 million a year earlier. The company attributed the revenue decline to a lower average bitcoin market price, partly offset by higher trading volume, while reduced transaction fees weighed on gross profit. The compliance settlement and weaker bitcoin economics arrived simultaneously, but they represent separate issues, with operations continuing alongside Cash App’s evolving crypto business.