Genesis Global Trading Settles with NYDFS, Pays $8 Million Penalty, and Surrenders BitLicense
Genesis Global Trading, a subsidiary of Digital Currency Group, has agreed to pay an $8 million penalty to the New York State Department of Financial Services (NYDFS) after settling allegations of compliance failures. The NYDFS accused the company of violating virtual currency and cybersecurity regulations, leading to its vulnerability to illicit activities and cybersecurity threats.
The settlement, announced on Friday, mandates Genesis Global Trading to cease its operations in the state of New York and surrender its BitLicense, which is required for engaging in virtual currency activities in the state.
NYDFS Superintendent Adrienne A. Harris expressed concern over the company’s failure to maintain a functional compliance program, stating that it demonstrated a disregard for regulatory requirements and exposed both the company and its customers to potential threats.
NEW: Superintendent Adrienne A. Harris Announces $8 Million Penalty Against Genesis Global Trading, Inc. After DFS Investigation Finds Significant Failings in Anti-Money Laundering and Cybersecurity Programs
More here: https://t.co/lVY2TfitRr pic.twitter.com/eiyYsgrWUY
— NYDFS (@NYDFS) January 12, 2024
Following routine examinations and an enforcement investigation, NYDFS found that Genesis Global Trading fell short of the required standards in various areas, including Bank Secrecy Act/Anti-Money Laundering (BSA/AML) compliance, transaction monitoring, Suspicious Activity Report (SAR) filings, Office of Foreign Assets Control (OFAC) screening, and cybersecurity.
The regulator specifically criticized the company’s cybersecurity risk assessment, stating that it was not sufficiently comprehensive and lacked the identification of areas requiring improvement.
NYDFS’s
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