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Thursday 10th of April 2025 23:00:29

Block Inc. Faces $40 Million Fine for Lax Bitcoin Transactions Oversight

Block Inc., the parent company of Square and Cash App, is facing a $40 million fine from the Financial Crimes Enforcement Network (FinCEN) for allegedly failing to properly monitor and report Bitcoin transactions.

According to a statement from FinCEN, Block Inc. did not adequately implement and maintain an effective anti-money laundering (AML) program, which is required by law. The company's failure to do so allowed for the lack of adequate monitoring and reporting of Bitcoin transactions, potentially putting the financial system at risk.

The fine is the result of a FinCEN investigation that began in 2020. During the investigation, FinCEN found that Block Inc. did not have adequate procedures in place to identify and report suspicious transactions, nor did it have a sufficient system for monitoring transactions and identifying potential money laundering or terrorist financing activities.

"We take our Bank Secrecy Act (BSA) and AML obligations very seriously and are committed to compliance," said a Block Inc. spokesperson. "We are working to resolve this matter and are confident that our efforts will be successful."

Block Inc. has 30 days to pay the fine, which is the maximum penalty allowed under the law. The company is also required to implement a new and effective AML program, which will be subject to ongoing monitoring by FinCEN.

This fine is a significant blow to Block Inc., which has been a major player in the digital payments space. The company's Cash App has been a popular platform for buying and selling Bitcoin, and the company's failure to properly monitor and report transactions has raised concerns about the potential for money laundering and other financial crimes.

The fine is also a reminder of the importance of compliance with AML regulations in the digital currency space. As the use of cryptocurrencies continues to grow, regulators are increasing their scrutiny of companies that handle these transactions, and companies that fail to comply with AML regulations may face significant penalties.