Block Inc., the financial technology company behind Cash App, has agreed to pay $45 million to settle claims brought by 46 U.S. states over its handling of fraud complaints on the popular money-transfer platform.
Regulators alleged the company failed to implement adequate safeguards and respond effectively to reports of fraudulent transactions, raising concerns about consumer protection.Cash App, which has around 59 million active users, is one of the largest peer-to-peer payment platforms in the United States.
State officials said the settlement reflects a broader effort to strengthen oversight of digital payment services and hold fintech companies accountable for protecting customers from financial fraud.
The agreement comes as state regulators take a more active role in financial enforcement, while federal oversight has shifted in recent years. Industry analysts say the case could influence future regulations governing digital payment platforms and may also impact ongoing investigations involving fraud on other money-transfer services such as Zelle.