NEW YORK, March 27, 2025: 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 shareholders seeking more information about Wolf
Popper’s investigation can contact Adam Savett at (212)
451-9655 or asavett@wolfpopper.com.
PRESS RELEASE
28 March 2025
Block, Inc. And Its Board Of Directors Are Being Investigated By Wolf Popper LLP, A Leading Law Firm, For Potential Breaches Of Fiduciary Duty
Wolf Popper
Contributor
Wolf Popper is a leading complex litigation law firm that represents clients in high stakes individual and class action litigations in state and federal courts throughout the United States. The firm specializes in securities fraud, mergers and acquisitions, consumer fraud litigation, healthcare litigation, ERISA, and commercial litigation and arbitration.
NEW YORK, March 27, 2025: Wolf Popper LLP is investigating potential derivative claims against members of the senior management and Board of Directors of Block, Inc.