News Page
Published February 1, 2025
State and federal authorities made explosive AML and fraud allegations against Block, the owner of Cash App. Block paid out $255 million dollars in fines, shocking investors. Some of those stunned investors are now suing the Company.
Cash App – a popular banking app – was the target of a shocking short-seller investigation in February 2023. The report alleged Cash App failed to follow anti-money laundering ("AML") laws and turned its eye toward illegal activities done on the platform. The report further alleged Block's executives knew of these problems but failed to do anything about it.
Forty-eight state attorneys general teamed up after the report to investigate the allegations. In January 2025, they announced a settlement with Cash App, requiring it to pay a $80 million penalty.
But that wasn’t the end of Cash App’s problems. The next day, the federal Consumer Financial Protection Bureau ("CFPB") slapped a staggering $180 million penalty on Cash App for putting users at risk of fraud and failing to adequately protect users' information.
Since the shortseller report was published, Block's stock has suffered repeated losses. Investors are now suing the Company to recover their investment.