# NYDFS settles Cash App AML and virtual-currency compliance failures with Block

> NYDFS imposed a $40 million penalty and independent monitor after finding customer-identification, due-diligence, and transaction-monitoring failures, including controls for high-risk Bitcoin activity.

- URL: https://riadefi.com/regulation/2025-04-10-nydfs-block-cash-app-aml-settlement/
- Posture: Enforcement
- Authorities: New York State Department of Financial Services
- Event date: 2025-04-10
- Version: 1, published 2026-08-07 (first published 2026-08-07)
- Advisor-relevant: yes

## What changed

NYDFS imposed a $40 million penalty and independent monitor after finding customer-identification, due-diligence, and transaction-monitoring failures, including controls for high-risk Bitcoin activity.

## Who it affects

- Virtual-currency and money-transmission firms, investment advisers diligencing platforms, and clients using Cash App

## What is still open

- Completion of remediation and the monitor’s findings

## What it means for an advisor

- Use the order as a diligence benchmark for platform growth controls, alert backlogs, customer identification, transaction monitoring, and board oversight.

## Sources

1. [NYDFS settles Cash App AML and virtual-currency compliance failures with Block](https://www.dfs.ny.gov/system/files/documents/2025/04/ea20250410-block.pdf) · New York State Department of Financial Services · 2025-04-10


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Published by Ketju Research on RIADeFi (https://riadefi.com). Educational research for financial professionals; not investment, legal, tax, or compliance advice.