Block and the DOJ reached an agreement in principle over charges that Block’s anti-money laundering program fell short of the Bank Secrecy Act’s requirements, Block disclosed in its quarterly filing. The deal carries a $964 million penalty, but Block would get $200 million in credit for earlier regulatory settlements, so it would pay $764 million, which it has already set aside. Once the deal is finalized and a court approves it, the DOJ would hold off on prosecuting Block for three years and then drop the charges if Block meets the terms. Block has already settled with New York regulators for $40 million over Cash App compliance failures and with 46 states for $45 million over Cash App fraud. Block’s shares still rose after it raised its 2026 gross profit growth outlook to 22%.
