Cases & Investigations
Block, Inc.
Type: Investigations
Stock Symbol: NYSE: XYZ
Wolf Popper LLP is investigating potential derivative claims against members of the senior management and Board of Directors of Block, Inc. (“Block”) (NYSE: XYZ) concerning Block’s deficient policies for complying with Anti-Money Laundering (AML) and Bank Secrecy Act (BSA) laws and regulations.
Block (fka Square, Inc.) is a large financial technology company. In 2013, Block introduced Cash App as a consumer-focused mobile payment application that offers peer-to-peer money transfers, direct deposits, savings accounts, debit cards, stock and bitcoin investing, tax filing services, and personal loans. Between 2020 and 2025, Block’s revenues grew from $9.50 billion to $24.12 billion, a compounded growth rate of 20.5% per year.
On March 23, 2023, Hindenburg Research published a report on Block alleging Cash App was widely used for human trafficking, drug trafficking, consumer scams, COVID-19 relief fraud, and even contract killing payments. The report said former Block employees described how the Company systemically suppressed internal concerns about Cash App and ignored user pleas and numerous red flags, to allow criminal activity and fraud to run rampant on the platform. Then in February and May 2024, NBC News reported federal regulators were probing allegations by two whistleblowers that Cash App performed inadequate due diligence on its users and pressured its banking partners to forgo traditional due diligence and Know Your Customer standards in order to ease the process of opening an account. A former Block employee told regulators that these violations were known to both Block senior management and the Board of Directors.
On January 15, 2025, 48 state financial regulators announced Block would pay an $80 million fine and undertake corrective actions for violations of AML and BSA laws. Then on January 16, 2025, the Consumer Financial Protection Bureau (CFPB) ordered Block to refund and pay other redress to consumers up to $120 million and pay a $55 million penalty into CFPB’s victims relief fund.
Block (fka Square, Inc.) is a large financial technology company. In 2013, Block introduced Cash App as a consumer-focused mobile payment application that offers peer-to-peer money transfers, direct deposits, savings accounts, debit cards, stock and bitcoin investing, tax filing services, and personal loans. Between 2020 and 2025, Block’s revenues grew from $9.50 billion to $24.12 billion, a compounded growth rate of 20.5% per year.
On March 23, 2023, Hindenburg Research published a report on Block alleging Cash App was widely used for human trafficking, drug trafficking, consumer scams, COVID-19 relief fraud, and even contract killing payments. The report said former Block employees described how the Company systemically suppressed internal concerns about Cash App and ignored user pleas and numerous red flags, to allow criminal activity and fraud to run rampant on the platform. Then in February and May 2024, NBC News reported federal regulators were probing allegations by two whistleblowers that Cash App performed inadequate due diligence on its users and pressured its banking partners to forgo traditional due diligence and Know Your Customer standards in order to ease the process of opening an account. A former Block employee told regulators that these violations were known to both Block senior management and the Board of Directors.
On January 15, 2025, 48 state financial regulators announced Block would pay an $80 million fine and undertake corrective actions for violations of AML and BSA laws. Then on January 16, 2025, the Consumer Financial Protection Bureau (CFPB) ordered Block to refund and pay other redress to consumers up to $120 million and pay a $55 million penalty into CFPB’s victims relief fund.
Contact Instructions
- Phone: Adam Savett - (212) 451-9655
- Email: outreach@wolfpopper.com