Genesis Global Trading, a subsidiary of Digital Currency Group (DCG), has agreed to pay an $8 million penalty to the New York Department of Financial Services (NYDFS) following an investigation into significant failings in its anti-money laundering and cybersecurity programs. The compliance failures left the company vulnerable to illicit activity and cybersecurity threats.Genesis Global Trading and Genesis Global Capital are separate entities, with only the former holding a license from the NYDFS. The investigation revealed that Genesis Global Trading did not meet required standards in Bank Secrecy Act/Anti-Money Laundering compliance, transaction monitoring, filing Suspicious Activity Reports, conducting Office of Foreign Assets Control screening, and maintaining cybersecurity. As part of the settlement, Genesis Global Trading will surrender its BitLicense and is in the process of shutting down its operations.Under Superintendent Adrienne A. Harris, the DFS has initiated its first supervisory and enforcement measures against crypto firms, including action against Binance, ordering Paxos to stop minting the BUSD stablecoin, and negotiating a large digital asset settlement with Coinbase.
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0 posts last weekGenesis Global Trading Fined $8M, Surrenders BitLicense Over Compliance Failures
Genesis Global Trading, a subsidiary of Digital Currency Group, has been fined $8 million by the New York Department of Financial Services (NYDFS) due to significant failings in its anti-money laundering and cybersecurity programs. The company, which received its BitLicense in 2018, will also surrender this license as part of a settlement.The NYDFS found that Genesis failed to meet the required Bank Secrecy Act and Anti-Money Laundering compliance standards, including transaction monitoring, Suspicious Activity Report filings, and Office of Foreign Assets Control screening. The regulator clarified that this entity is not involved in the Gemini Earn program and is distinct from Genesis Global Capital, which filed for bankruptcy in 2023.
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