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Block Wins Dismissal of Shareholder Lawsuit Over 2021 Cash App Breach

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Block (XYZ.N), the fintech company led by Jack Dorsey, has defeated a shareholder lawsuit tied to a 2021 Cash App data breach that exposed information from about 8.2 million users.

The Case

  • Shareholders accused Block of:

    • Inflating its stock price by failing to disclose weak data security before the breach.

    • Delaying disclosure until April 2022, nearly four months after the incident.

    • Misleading Afterpay shareholders ahead of its $29 billion acquisition of the BNPL firm in January 2022.

Court’s Ruling

  • U.S. District Judge Margaret Garnett in Manhattan dismissed the case.

  • She ruled there was no evidence Block intended to defraud investors.

  • General statements about data security risks were not guarantees of system safety.

  • Shareholders also failed to prove:

    • A unique link between alleged misstatements and the Afterpay deal.

    • That Block executives had a specific motive or benefit from the alleged omissions.

Context

  • Block has faced regulatory pressure over Cash App:

    • $80M settlement with 48 U.S. state regulators (Jan 2024).

    • $40M settlement with New York (Apr 2024).

  • Despite these issues, Cash App processed $283B in inflows in 2024 and had 57M monthly active users by year-end.

What’s Next

  • The case (In re Block Inc Securities Litigation, No. 22-08636) is now dismissed, though investors could still pursue an appeal.

  • For Block, the ruling removes a major legal overhang as it continues to scale Cash App and integrate Afterpay.

South Korea’s Toss Targets Global Expansion, Eyes Won-Based Stablecoin

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South Korean fintech unicorn Toss is preparing a major international expansion, starting with Australia, while also positioning itself to issue a won-based stablecoin once regulations are in place, CEO and founder Lee Seung-gun said on Tuesday.

Founded in 2015, Toss has grown to more than 30 million users in South Korea, showing that a startup can challenge traditional banks and brokers head-on. Lee, a dentist-turned-entrepreneur, said the company’s success at home can be replicated abroad.

“We proved in Korea that a startup can compete head-on with entrenched players. A similar model can work globally, especially in countries where users juggle multiple bank accounts or fintech apps. We want to bring them into one seamless experience,” Lee told Reuters.

Global push begins in Australia

  • Toss has established an Australian unit and aims to launch core services such as peer-to-peer money transfers by year-end.

  • Australia’s fragmented banking system and open-banking rules make it an attractive entry point.

  • Toss is reviewing other markets, with Singapore serving mainly as a regional hub rather than a retail market.

Stablecoin ambitions

Lee confirmed Toss’s intent to issue a digital won stablecoin, pending regulatory approval. South Korea’s government is drafting legislation this year to allow stablecoin issuance under strict oversight and consumer protections.

“We will issue and distribute won-based stablecoin – that I can say for sure,” Lee said, noting Toss is in regular talks with regulators to build the necessary infrastructure.

IPO plans

Toss is also preparing for a U.S. IPO in Q2 2026, targeting a valuation of $10–15 billion, according to earlier reports. If achieved, it would be the largest U.S. listing by a South Korean firm since 2021. Global funds see Toss as one of the few fintechs delivering on the super app model.

Lee emphasized that Toss’s long-term ambition is to become “a global internet company built on financial services”, not just another financial holding firm.

Revolut Names Former SocGen CEO Frederic Oudea as Chairman of Western Europe

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Revolut has appointed Frederic Oudea, the former CEO of Societe Generale (SOGN.PA), as chairman of its Western Europe hub in Paris, strengthening its leadership team as it prepares to apply for a French banking licence. Oudea, who also serves as chairman of Sanofi, brings significant credibility to the London-based fintech as it accelerates expansion in the region.

The move comes after Revolut announced plans in May to invest €1 billion ($1.2 billion) over the next three years to grow its presence in France, including opening a new Paris office to oversee Western Europe operations. The company, which has more than 60 million customers worldwide but no physical branches, is Europe’s largest fintech challenger bank.

Revolut recently launched a share sale valuing the company at $75 billion, up from $45 billion in August 2024. It secured a restricted UK banking licence in 2024 after a lengthy three-year process and plans to begin operations as a UK bank this year. The company also holds a Lithuanian banking licence, which allows it to sell products across the EU. Gaining a second licence in France would help Revolut build closer ties with regulators and tailor services more specifically for French customers.

The fintech is also reported to be exploring the purchase of a U.S. lender to obtain an American banking licence, though it has declined to comment on those reports. Oudea’s appointment follows a broader trend of established banking executives moving into digital finance. In August, N26 appointed Andreas Dombret, a former Bundesbank board member, as chair of its supervisory board.