Kentucky reaches $45M national settlement with CashApp over business practices

Kentucky, alongside 45 other states, has reached a $45 million settlement with CashApp for unfair and deceptive business practices, Attorney General Russell Coleman announced.

A multi-state coalition was started in 2021 to investigate the parent company of financial platform CashApp, Block Incorporated. The investigation found that the Block Inc., formerly Square Incorporated, had misrepresented CashApp’s safety and insurance coverage, failed to honor refund protections and wrongly froze some user’s accounts.

“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 in a press release.

The settlement resulted a total of $556,445.47 for defrauded Kentuckians and for recovery of investigation and litigation costs. CashApp also agreed to implement and maintain practices to resolve security and customer service issues as a result of settlement.

Changes to CashApp include:

• 24-hour live customer support
• Anti-fraud safeguards reporting to state attorneys general
• Procedures for notifying customers of account suspensions, deactivations and locks.

The group of 46 attorneys general also secured $75 million to $120 million for direct relief to CashApp users nationwide. Further legal action will be taken by the group if Block Inc. has not paid at least $75 million by January 2030.

Kentucky was represented by Matt Cocanougher and Lindsey Antos with the Attorney General’s Office of Consumer and Senior Protection in the case.

The 46 states who joined the lawsuit were Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, and Wisconsin.

See the full settlement below.

This story was originally published July 9, 2026 at 3:13 PM with the headline "Kentucky reaches $45M national settlement with CashApp over business practices."