A coalition of 46 states, led by Oregon Attorney General Dan Rayfield and Texas Attorney General Ken Paxton, was awarded $45 million in a settlement with Block Inc. on Wednesday, after a judge found the company’s peer-to-peer payments service Cash App failed to protect users from fraud and downplayed safety concerns.

The attorneys general allege Block promoted Cash App as a safe place for consumers to deposit funds and implied it provided the same protections as a bank account, which it does not. While doing so, the attorneys general allege, the company was aware that fraud was increasing on the platform, and instead of issuing warnings or updating consumer safeguards, the company “doubled down on marketing.”

“Cash App told people their money was safe, and millions of Oregonians and Americans believed them, including a lot of people who didn’t have other options,” Rayfield said in a statement. “When things went wrong, Block left them with nowhere to turn. This settlement holds Block accountable and makes sure they can’t walk away from money they promised to pay back to consumers.”

The attorneys general allege that the enrollment process for Cash App was designed to be “fast and frictionless” and came with minimal identity verification, making it easy for fake accounts to thrive. The company had no phone support line. Customers sought service help through the app or social media, or they dialed phone numbers they found online run by scammers, who took consumer information and drained their Cash App accounts.

The company also had a “Cash App Fridays” promotion in which users would post their handle on social media for the chance to win a weekly prize. Scammers, the attorneys general say, would then contact users and tell them they won, tricking them into sharing their information.

As part of the settlement, Block denied any wrongdoing and all allegations in the complaint.

“When Texans trust a financial platform with their paychecks, savings, and family’s security, they deserve to be fully protected as promised. I will make sure that they are,” Paxton said in a statement. “This settlement ensures that Texans who were harmed can recover what they are owed. It sends the clear and unmistakable message that exploiting consumers is not a business strategy — it’s a liability.”

Hawaii, Missouri, South Carolina and Wyoming were the only states to not participate in the suit.

Days before President Donald Trump took office again, the Consumer Financial Protection Bureau issued an order against Block for similar infractions by Cash App between July 2019 and January 2025.

The agency found that Block failed to provide effective customer service and failed to take timely measures to address, detect and prevent fraud on the app, both in violation of the 2010 Consumer Financial Protection Act. The order also found that Block failed to meet its obligations under the Electronic Fund Transfer Act and Regulation E to resolve issues in a timely fashion.

Block was ordered to amend its practices to be compliant and pay between $75 million and up to $120 million in redress to customers, as well as an additional $55 million in civil penalties. The website for the settlement states that checks began to be mailed out on June 8.

In the press release announcing the state attorney general settlement, the Oregon Department of Justice said the multistate agreement would serve as a backstop.

“Under the new administration, the CFPB has canceled several settlements, including at least two in which restitution had not yet been paid,” the department said. “Consequently, the multistate agreement ensures that if Block fails to pay the restitution it promised under the CFPB settlement, that obligation will be absorbed into Oregon’s settlement and enforced by the multistate executive committee.”

The Trump administration has greatly curtailed the CFPB’s enforcement ability. Shortly after taking office, the Trump officials began work to dismantle the agency, calling for its shuttering and the firing of 90% of staff.

The administration canceled the CFPB headquarters lease and instituted a work stoppage for nearly all activity at the consumer watchdog agency created in response to the 2008 financial crisis.

Nearly one-third of the CFPB workforce has been culled or otherwise left; in May, CFPB officials announced all regional office employees would need to relocate to Washington, D.C., or resign. A federal appeals court last month blocked a Trump administration plan to cut the remaining staff by two-thirds. The case was sent back to district court at the administration’s request.