Block has booked $764 million against a planned deferred prosecution agreement with the Justice Department, putting a price on a probe of the Cash App and Square operator’s anti-money laundering controls that dates to 2023, according to a quarterly SEC filing posted Nov. 3.

The October agreement in principle calls for a three-year deferred prosecution agreement covering “a charge that the Company failed to maintain an effective anti-money laundering program in violation of the Bank Secrecy Act.” Full compliance over the term would end with the DOJ moving to dismiss the charge with prejudice.

No final deal is signed, a court must still approve one, and the filing says the cost could exceed what Block has accrued.

Block expects to pay about $764 million net, down from a gross monetary component of about $964 million, once credit for prior regulatory resolutions is applied.

The $764 million accrual is $238 million more than the $526 million accrued at the end of June, when Block said in its 10-Q that the DOJ’s assessment did not reflect “its view of an appropriate measure of loss, harm or the Company’s potential financial liability.” That language is gone from the new filing.

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Block Keeps Less of Each Bitcoin Dollar

Gross profit in the category Block calls its bitcoin ecosystem slid to $52 million from $104 million a year before, a drop the company’s shareholder letter said was “driven primarily by a strategic decision to reduce the fee we charge on certain bitcoin transactions on Cash App.” A lower average bitcoin price outweighed higher trading volume, leaving bitcoin ecosystem revenue 11% lower at about $1.8 billion, the 10-Q shows.

By Unchained’s calculation, each dollar of bitcoin ecosystem revenue left Block with about 2.9 cents of gross profit, against about 5.1 cents a year earlier. In 2024, Block said it planned to put 10% of its monthly bitcoin gross profit into buying bitcoin through year-end.

Block now expects 2026 gross profit of $12.626 billion, 22% more than in 2025, against the $12.51 billion it projected in August. Its adjusted diluted earnings-per-share forecast moved to $4.15 from $4.02.

How the Probe Began

Block received inquiries from the DOJ and SEC shortly after a short seller’s report in March 2023. SEC staff told Block in March 2026 that they had concluded their investigation with no enforcement recommendation. In 2025, Block agreed to pay $40 million to New York’s financial regulator and an $80 million penalty to 48 state regulators over Cash App’s anti-money laundering compliance. The filing does not say whether either counts toward the DOJ credit.

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