Block agrees to $764 million DOJ settlement as Bitcoin profit drops 50%

Block, the payments company founded by Jack Dorsey, disclosed in a Form 10‑Q filed on Nov. 3 that it has reached a deferred‑prosecution agreement with the U.S. Department of Justice. The agreement would require Block to set aside $764 million to settle allegations that it failed to maintain an effective anti‑money‑laundering (AML) program under the Bank Secrecy Act. The gross figure before credits was about $964 million; prior regulatory settlements provide a $200 million credit, leaving the net amount at $764 million, according to the filing.

Details of the DOJ agreement

Under the proposed deal, criminal charges are deferred for three years, and will be dismissed if Block complies with a series of remediation obligations. The structure mirrors a 2023 deferred‑prosecution agreement reached by Binance, though Block’s exposure is considerably smaller. The settlement still requires final court approval, and Block warned that “losses above” the accrued amount are “reasonably possible.”

Bitcoin business performance

Block’s quarterly results show a stark contrast between its overall earnings and its Bitcoin segment. Total gross profit rose 22% to $3.24 billion, with Cash App and Square each posting double‑digit profit growth. By contrast, the Bitcoin ecosystem’s gross profit fell 50% year‑over‑year to $52 million, and Bitcoin‑related revenue slipped 11% to $1.8 billion, according to the company’s release. Block said the decline stemmed from a strategic decision to lower fees on certain Cash App Bitcoin transactions, aiming to promote Bitcoin as a payment rail rather than a trading product. The move coincided with a price drop in BTC from roughly $114,000 to $70,000 over the same period.

Regulatory background and future outlook

The DOJ investigation dates back to March 2023, when short‑seller Hindenburg Research accused Cash App of inflating user numbers and allowing weak identity checks that facilitated illicit activity. Block denied the claims, but the allegations prompted inquiries by the DOJ and the SEC, the latter closing its probe in March 2025 without recommending enforcement. State regulators also acted: New York’s Department of Financial Services fined Block $40 million in April 2025 for a backlog of suspicious‑activity alerts, and a multistate settlement added $80 million in January 2025. These prior payments form part of the credit applied to the DOJ figure. Block is simultaneously pursuing a charter for Builders Bank, a unit intended to provide custody and fiduciary services for Bitcoin. Regulators are likely to weigh the company’s compliance history when evaluating the charter request.

What to watch next

Investors and observers will monitor three key developments: (1) final court approval of the deferred‑prosecution agreement and any additional financial impact; (2) Block’s ability to meet the AML remediation milestones required to avoid a conviction; and (3) the outcome of the Builders Bank charter application, which could expand Block’s role in the Bitcoin ecosystem.