Millions of Cash App users across the United States could soon receive compensation following a $12.5 million class action settlement approved in 2025. The lawsuit, filed against Block, Inc. (the parent company of Cash App, formerly known as Square, Inc.), alleged that the company failed to adequately protect user data and delayed notifying affected individuals after a significant security breach.
Under the settlement terms, qualified users may receive approximately $147 each, with additional compensation possible for those who experienced financial losses related to the breach. Below is a complete overview of who qualifies, how to apply, and when payments will be issued.
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Cash App Settlement 2025
The legal action stemmed from a data breach between December 2021 and April 2022, which exposed the personal and financial details of more than 8 million Cash App Investing users. The compromised information included customer names, account numbers, and portfolio data.
Plaintiffs accused Cash App of failing to implement proper cybersecurity protocols and of delaying notification to customers about the breach. Although Block, Inc. denied any wrongdoing, the company agreed to the settlement to avoid lengthy litigation.
This settlement aims to provide compensation to users who may have faced risks such as identity theft or financial fraud following the incident.
Eligibility Criteria
Not every Cash App user qualifies for payment. The settlement outlines specific eligibility criteria. To receive compensation, you must:
- Have held a Cash App Investing account affected by the breach between December 2021 and April 2022.
- Be a U.S. resident who received an official notice via email or letter from Cash App or Block, Inc.
- Submit a valid claim form before the official deadline (generally within 60–90 days of receiving your notice).
Eligible users who complete the process correctly may receive an estimated $147, though the final amount could vary depending on how many valid claims are approved.
If you can prove financial harm—such as expenses for credit monitoring, identity theft protection, or unauthorized transactions—you may qualify for additional reimbursement.
How to File a Claim
Submitting your claim is a straightforward process that can be completed online through the official settlement portal, which is linked in the notification email or letter you received.
You’ll need:
- Your Claim ID number (provided in your notice).
- Verification details from your Cash App Investing account.
- Optional documentation for any extra financial losses claimed.
Alternatively, you can submit a paper claim by mail. Be sure all information is accurate and that you file before the deadline. Late or incomplete claims may not be processed.
For more details and to file your claim, visit the official settlement page via www.cashappsettlement.com or check updates on the official U.S. government class action settlements portal at www.uscourts.gov.
Settlement Payment Schedule
Payments are expected to be released by late 2025, following the final court approval.
| Settlement Component | Amount (USD) | Description |
|---|---|---|
| Total Settlement Fund | $12.5 million | Total compensation pool for all eligible claimants |
| Average User Payment | $147 (estimated) | Standard payment for verified users |
| Additional Compensation | Variable | Extra payment for users with documented financial losses |
Claimants can choose how they wish to receive their funds:
- Direct deposit to a bank account
- PayPal or Venmo transfer
- Paper check mailed to the address on file
If you miss the filing deadline or fail to respond to the settlement notice, you may lose your eligibility for payment.
Avoiding Scams and Fake Settlement Sites
Officials have already warned about fraudulent websites and phishing attempts related to this settlement. To stay safe:
- Only use the official settlement website or the link in your email notice.
- Do not share personal information via text, phone, or social media.
- Confirm that any emails come from verified domains ending in “.com” or “.org.”
The IRS has also clarified that settlement payments are not taxable unless part of the amount compensates for proven financial losses.
Conclusion
The $12.5 million Cash App settlement represents a major step in holding financial technology companies accountable for data protection. Qualified users may receive an average of $147, with larger payouts for those who experienced measurable financial harm.
If you received an official notice, be sure to file your claim before the deadline and only through authorized channels. Payments are anticipated by the end of 2025, marking a resolution to one of the largest data breach settlements involving a major digital finance platform.
FAQs
A1: U.S. residents with a Cash App Investing account affected by the 2021–2022 breach who received a notice and submit a valid claim.
A2: You can submit it online at the official site www.cashappsettlement.com using your Claim ID.
A3: Payments are expected to be issued by late 2025, after the court grants final approval.
