Jack Dorsey’s Block (XYZ) Sets Aside $764 Million for DOJ Settlement as Bitcoin Profit Halves

Jack Dorsey’s company, Block, has reportedly agreed in principle to a substantial $764 million deferred-prosecution deal with the Department of Justice. This settlement addresses alleged anti-money-laundering (AML) failures identified within Block's popular mobile payment service, Cash App. The financial penalty for this agreement significantly exceeds Block's reported $566 million profit from the third quarter. Concurrently, the company experienced a notable downturn in its Bitcoin-related revenue, with its gross profit derived from Bitcoin transactions decreasing by 50%. This decline in Bitcoin gross profit is attributed to Block's strategic decision to reduce trading fees for its Bitcoin services, likely aiming to stimulate user engagement or transaction volume despite the immediate impact on profit margins.