Block Settles Cash App False-Advertising Claims for $45 Million, Denies Wrongdoing
Summary
- Block reached a $45 million settlement with US regulators over allegations of false advertising tied to Cash App.
- US regulators alleged that Cash App misled users by advertising itself as offering the same level of depositor protection as a traditional bank.
- Block agreed to pay $45 million but did not admit liability or wrongdoing, saying the settlement is intended to resolve previously disclosed matters related to its past business practices.
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Block has reached a $45 million settlement with US regulators over allegations that its mobile payments service Cash App misled users through false advertising.
Crypto-focused media outlet The Block reported on July 8 that regulators in most US states, including the New York Attorney General’s Office, alleged Cash App marketed itself in a way that led users to believe it offered the same level of depositor protection as traditional banks.
Regulators also alleged that Block failed to maintain a consistent fraud-detection system and a customer support hotline for reporting fraud losses.
Block agreed to pay $45 million but did not admit liability or wrongdoing. The company said the settlement is intended to resolve previously disclosed matters related to its past business practices.
JH Kim
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