Block DOJ Settlement: Jack Dorsey’s Company Faces $764M Deal as Bitcoin Profit Plunges 50%
Block DOJ settlement talks have reached a significant turning level, with Jack Dorsey-owned funds firm agreeing in precept to pay $764 million. The proposed deal would resolve a federal investigation into alleged failures in its anti-money laundering controls.
The settlement follows years of scrutiny over Block’s Cash App compliance practices. The firm disclosed the event in its quarterly filing yesterday, outlining a deferred prosecution settlement with the U.S. Department of Justice.
The announcement arrives alongside a pointy decline in Block’s Bitcoin enterprise. Bitcoin ecosystem gross revenue plunged 50% year-over-year to $52 million in the course of the third quarter, regardless of stronger general firm earnings.
Block DOJ Deal Could Defer Criminal Charges for Three Years
The proposed Block DOJ settlement would defer prosecution for 3 years over allegations that the corporate failed to take care of an efficient anti-money laundering program. The DOJ’s investigation facilities on compliance necessities beneath the Bank Secrecy Act. Block would want to fulfill obligations outlined within the settlement all through its time period.
If the corporate absolutely complies, prosecutors would transfer to dismiss the deferred expenses. However, the decision stays topic to closing settlement phrases and courtroom approval.
The proposed settlement carries a gross financial part of roughly $964 million. Credits for earlier regulatory resolutions would scale back the anticipated internet cost to roughly $764 million. Block has already accrued $764 million for the matter as of September 30. The firm warned that the ultimate price may exceed that quantity.
The investigation dates again to 2023, when federal authorities started analyzing Block’s compliance practices and associated disclosures. The scrutiny adopted allegations raised by quick vendor Hindenburg Research.
Block rejected these allegations as inaccurate and deceptive. Separately, New York’s monetary regulator fined the corporate $40 million in 2025 over compliance failures.
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Bitcoin Profit Plunges as Block Raises Earnings Outlook
The Block DOJ improvement comes as the corporate’s Bitcoin enterprise faces a pointy profitability decline. Block reported Bitcoin ecosystem gross revenue of $52 million in Q3, down from $104 million a 12 months earlier. The firm attributed the decline primarily to decrease charges on sure Bitcoin transactions by means of Cash App.
Bitcoin-related income reached roughly $1.8 billion in the course of the quarter. However, the decrease charges considerably lowered the quantity Block retained from its Bitcoin operations.
The weak point contrasts with stronger efficiency throughout the broader enterprise. Block reported $3.24 billion in complete gross revenue, up 22% year-over-year. Cash App gross revenue climbed 27% to $2.07 billion. Square gross revenue elevated 14%, whereas quarterly internet revenue rose to roughly $566 million.
Block additionally raised its full-year 2026 gross revenue forecast to $12.63 billion, representing anticipated development of roughly 22%.
Now, proposed Block DOJ settlement creates a significant authorized expense alongside a blended earnings image. Its Bitcoin enterprise is producing much less revenue, even as Cash App and Square assist stronger company-wide development.
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