Block has reached an agreement in principle with the U.S. Department of Justice to resolve an anti-money-laundering investigation through a deferred prosecution agreement (DPA) carrying a net payment of approximately $764 million, according to its third-quarter filing on Nov. 4, 2026. The proposed deal remains subject to a final agreement and court approval.
The DOJ inquiry followed a March 2023 short-seller report and focused on allegations involving Block’s compliance practices and related disclosures. In March 2026, the DOJ presented settlement terms, and the parties reached an agreement in principle in October. The proposed DPA would defer for three years a charge alleging that Block failed to maintain an effective anti-money-laundering program under the Bank Secrecy Act. The gross monetary component is about $964 million, but credits for earlier regulatory resolutions reduce Block’s net payment to roughly $764 million, an amount accrued as of Sept. 30.
The filing also noted that the SEC closed its investigation in March 2026 without recommending enforcement action. If Block complies fully during the three-year DPA, the DOJ would seek dismissal with prejudice of the deferred charge. However, Block cautioned there is no assurance a final agreement will be reached and prosecution could follow if a DPA were later violated.
Separately, Block reported weaker Bitcoin ecosystem results. Cash App provides access to Bitcoin, and third-quarter bitcoin ecosystem revenue fell 11% year over year to approximately $1.80 billion, while gross profit dropped to about $52 million from $104 million a year earlier. The company attributed the revenue decline to a lower average bitcoin market price, partly offset by higher trading volume, while reduced transaction fees weighed on gross profit.
