Genesis Global Trading Faces $8 Million Fine

by

Genesis Global Trading has agreed to a settlement
with the New York Department of Financial Services (NYDFS). The company, known
for its crypto operations, will pay a fine of $8 million, relinquish its
BitLicense obtained since 2018, and cease all operations in New York.

This move followed an investigation by New York
authorities, exposing flaws in Genesis’ Anti-Money Laundering and cybersecurity
protocols, rendering the firm susceptible to illicit activities.

The New York State Department of Financial Services
(DFS) Superintendent Adrienne Harris mentioned: “DFS’s virtual currency
and cybersecurity regulations are often cited as the gold standard, providing
clear and stringent requirements to protect consumers and safeguard institutions
from bad actors.”

“Genesis Global Trading’s failure to maintain a
functional compliance program demonstrated a disregard for the Department’s
regulatory requirements and exposed the company and its customers to potential
threats.”

The DFS’ investigation pointed to flaws in crucial
areas such as the Bank Secrecy Act, anti-money laundering compliance,
transaction monitoring, Suspicious Activity Report filings, Office of Foreign
Assets Control (OFAC) screening, and cybersecurity.

Licensed in 2018, Genesis Global Trading operated
under the purview of the NYDFS. However, this settlement necessitates that
Genesis surrender its BitLicense.

Expect ongoing updates as this story evolves.

Genesis Global Trading has agreed to a settlement
with the New York Department of Financial Services (NYDFS). The company, known
for its crypto operations, will pay a fine of $8 million, relinquish its
BitLicense obtained since 2018, and cease all operations in New York.

This move followed an investigation by New York
authorities, exposing flaws in Genesis’ Anti-Money Laundering and cybersecurity
protocols, rendering the firm susceptible to illicit activities.

The New York State Department of Financial Services
(DFS) Superintendent Adrienne Harris mentioned: “DFS’s virtual currency
and cybersecurity regulations are often cited as the gold standard, providing
clear and stringent requirements to protect consumers and safeguard institutions
from bad actors.”

“Genesis Global Trading’s failure to maintain a
functional compliance program demonstrated a disregard for the Department’s
regulatory requirements and exposed the company and its customers to potential
threats.”

The DFS’ investigation pointed to flaws in crucial
areas such as the Bank Secrecy Act, anti-money laundering compliance,
transaction monitoring, Suspicious Activity Report filings, Office of Foreign
Assets Control (OFAC) screening, and cybersecurity.

Licensed in 2018, Genesis Global Trading operated
under the purview of the NYDFS. However, this settlement necessitates that
Genesis surrender its BitLicense.

Expect ongoing updates as this story evolves.

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