SEC Fines Block $40M for Lax Anti-Money-Laundering Compliance

Block Agrees to $40 Million Settlement with New York Over Faulty Money Laundering Controls

April 10, 2025 - In a major settlement, Block, the parent company of popular cryptocurrency trading platform Coinbase, has agreed to pay $40 million to the state of New York to settle allegations that it failed to properly implement anti-money laundering (AML) controls.

The settlement, announced by the New York State Department of Financial Services (DFS), stems from a 2022 investigation that found Block's AML program was inadequate and failed to detect and prevent transactions involving illegal activities, including money laundering and terrorist financing.

According to the DFS, the investigation revealed that Block's AML program did not adequately identify and report suspicious transactions, and that the company failed to provide adequate training to its employees on AML and Bank Secrecy Act (BSA) requirements.

The settlement requires Block to implement a comprehensive AML program, including enhanced training for employees, improved monitoring of transactions, and increased reporting of suspicious activity to regulatory authorities.

"We are pleased to have reached a settlement with the DFS that addresses the concerns raised during our investigation," said a Block spokesperson. "We are committed to ensuring the integrity of our AML program and to complying with all relevant regulations."

The settlement is the latest in a series of high-profile AML enforcement actions taken by the DFS against cryptocurrency companies operating in the state. In recent years, the agency has taken similar actions against companies such as BitMEX and Kraken.

The $40 million settlement is one of the largest ever imposed by the DFS for AML violations, and serves as a warning to other cryptocurrency companies operating in the state to ensure they have robust AML programs in place.