Kentucky attorney general announces $45 million national settlement with CashApp

FRANKFORT, Ky. – Attorney General Russell Coleman has announced a $45 million national settlement with Block Inc., the owner of CashApp.

According to the attorney general’s office, Kentucky joined 45 other states in taking legal action against the financial platform alleging “unfair and deceptive business practices.”

Officials say an investigation that began in 2021 found Block “misrepresented CashApp’s safety and insurance coverage, failed to honor and refund protections and wrongfully froze innocent users’ accounts.”

Coleman says he secured a total of $556,445.47 for defrauded Kentucky CashApp users as well as an agreement for CashApp to strengthen its security and customer service. Changes include 24-hour live customer support, anti-fraud safeguards reporting to the AGs and procedures for notifying consumers of account suspensions, deactivations and locks, officials say.

“We’re proud to protect Kentucky consumers from predatory businesses. We are helping to make Kentuckians whole and putting into place safeguards that will help prevent Kentuckians from falling victim to fraud in the future,” Coleman said.

The 46-state group of attorneys general has locked in $75 to 120 million to provide direct relief to CashApp users nationwide, according to the attorney general’s office. Additional legal action will be taken if Block has not paid at least $75 million in consumer redress by January 2030.

A spokesperson for Block, Inc. shared the following statement:

We’ve reached an agreement that resolves a previously disclosed legacy matter that primarily relates to historical aspects of our business. Cash App has made significant investments in consumer protection, customer service, and compliance in order to safeguard and serve the tens of millions of Americans who rely on Cash App to meet their banking and credit needs. We share the commitment of the attorneys general to addressing industry challenges and continue to invest in operations and technology to promote a safe and healthy financial ecosystem.

Read the settlement here.