Block's Proposed $764 Million DOJ Deal Tops Q3 Profit as Bitcoin Gross Profit Halves

Block faces a proposed $764 million U.S. Justice Department settlement over anti-money-laundering controls, exceeding its $566 million third-quarter profit as Bitcoin (BTC) ecosystem gross profit fell by half.

Block disclosed the agreement in a Nov. 3 filing after reaching it in principle in October. It would defer prosecution for three years on a Justice Department charge alleging Block operated an ineffective anti-money-laundering program under the Bank Secrecy Act.

The filing puts the gross monetary component at about $964 million. Credits for earlier regulatory settlements bring the proposed amount to $764 million, which Block has set aside.

Bitcoin ecosystem gross profit dropped 50% to $52 million in the quarter from $104 million a year earlier. Bitcoin revenue fell 11% to $1.8 billion, with lower fees on some transactions driving the profit decline.

Block's overall gross profit increased 22% to $3.24 billion, supported by Cash App lending and payments. The results show the decline in its Bitcoin business alongside growth in its broader business.