Block Inc. has agreed to pay $ 40 million to settle allegations of the New York Department of Financial Services that the company did not properly manage its money measures, according to a statement from the regulator correctly.

Block, which drives the cash app for peer-to-peer transactions and was previously known as Square Inc., is under orders from the New York regulator to fix any defects and to submit to an outside screen. The regulator noted that the blockchain and payment company ‘”escaped the treatment of high-risk bitcoin transactions” in the past years letting effective anonymous transactions through its system.

“The rapid growth of Block’s cash app Absent A robust compliance feature created risk and vulnerabilities that violated the rules of financial service companies operating in New York must comply,” Nydf’s Superintendent Adreienne Harris said in the statement. “The department is taking crucial steps to ensure accountability, including the appointment of an independent monitor to oversee corrective action.”

In a statement from Block, the company said it did not admit any of the conclusions in the New York case, but it is “happy to put this case behind us.”

“After our recent settlement with our other state money transfer regulators, we have now reached an agreement with the last remaining state money transfer regulator, the New York Department of Financial Services, to resolve a question related mainly to the Cash App’s previous compliance program,” the company said.

The regulator’s investigations covered a period spanning over 2021 and 2022 in the company founded by Jack Dorsey, and the resulting consent order noted “serious compliance deficiencies” that had created “a high -risk vulnerable to the exploitation of criminal actors.”

Since 2018, Block has had a New York Bitlicense to implement digital assets in the state.

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