Block DOJ Settlement: Jack Dorsey’s Company Faces $764M Deal as Bitcoin Profit Plunges 50%

Block DOJ settlement talks have reached a major turning point, with Jack Dorsey-owned payments company agreeing in principle to pay $764 million. The proposed deal would resolve a federal investigation into alleged failures in its anti-money laundering controls.

The agreement follows years of scrutiny over Block’s Cash App compliance practices. The company disclosed the development in its quarterly filing yesterday, outlining a deferred prosecution agreement with the U.S. Department of Justice.

Jack Dorsey’s Block has beaten Q3 earnings estimates, posting $3.2B in gross profit.

The company has also raised its 2026 outlook, while warning that a potential DOJ settlement could be larger than expected.

Strong results and a higher forecast from one of the biggest names in… pic.twitter.com/Bk0KByUDPV

The announcement arrives alongside a sharp decline in Block’s Bitcoin business. Bitcoin ecosystem gross profit plunged 50% year-over-year to $52 million during the third quarter, despite stronger overall company earnings.

The proposed Block DOJ agreement would defer prosecution for three years over allegations that the company failed to maintain an effective anti-money laundering program. The DOJ’s investigation centers on compliance requirements under the Bank Secrecy Act. Block would need to meet obligations outlined in the agreement throughout its term.

If the company fully complies, prosecutors would move to dismiss the deferred charges. However, the resolution remains subject to final agreement terms and court approval.

The proposed settlement carries a gross monetary component of approximately $964 million. Credits for previous regulatory resolutions would reduce the expected net payment to roughly $764 million. Block has already accrued $764 million for the matter as of September 30. The company warned that the final cost could exceed that amount.

The investigation dates back to 2023, when federal authorities began examining Block’s compliance practices and related disclosures. The scrutiny followed allegations raised by short seller Hindenburg Research.

Block rejected those allegations as inaccurate and misleading. Separately, New York’s financial regulator fined the company $40 million in 2025 over compliance failures.

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The Block DOJ development comes as the company’s Bitcoin business faces a sharp profitability decline. Block reported Bitcoin ecosystem gross profit of $52 million in Q3, down from $104 million a year earlier. The company attributed the decline primarily to lower fees on certain Bitcoin transactions through Cash App.

Bitcoin-related revenue reached approximately $1.8 billion during the quarter. However, the lower fees significantly reduced the amount Block retained from its Bitcoin operations.

The weakness contrasts with stronger performance across the broader business. Block reported $3.24 billion in total gross profit, up 22% year-over-year. Cash App gross profit climbed 27% to $2.07 billion. Square gross profit increased 14%, while quarterly net income rose to approximately $566 million.

Block also raised its full-year 2026 gross profit forecast to $12.63 billion, representing expected growth of roughly 22%.

Now, proposed Block DOJ settlement creates a major legal expense alongside a mixed earnings picture. Its Bitcoin business is generating less profit, even as Cash App and Square support stronger company-wide growth.

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