Block Inc Negotiates Settlement with New York Financial Regulators
Block Inc is negotiating with the New York State Department of Financial Services (NYDFS) to resolve compliance violations related to Bitcoin and anti-money laundering practices. Key points include:
- Litigation has been ongoing since 2021, initiated by the SEC.
- Earlier this year, Block paid $80 million to settle cases with other state regulators but excluded NYDFS from the agreement.
- Block stated it is setting aside funds for the potential settlement, which it describes as “not material.”
- The company maintains it has not violated any laws, and the outcome of ongoing regulatory scrutiny remains uncertain.
- As of the latest trading data, Block's stock rose by 2.10%, priced at $64.16.
Additionally, Block faces tax litigation in San Francisco over unpaid taxes on Bitcoin profits from 2020 to 2022. The firm claims to have already paid $71.4 million against these allegations and is seeking a refund.
Investigations by the SEC and the Department of Justice are ongoing, with Block indicating it cannot predict the outcomes. The company is also shifting its focus towards Bitcoin mining, reducing efforts in its music streaming service, TIDAL, and discontinuing its decentralized web project, TBD.
Block aims to strengthen its position in the Bitcoin sector, aligning with trends observed in other companies like MARA Holdings, which recently acquired a wind farm to enhance Bitcoin mining efficiency.