Genesis Global Trading, a subsidiary of Digital Currency Group, has been ordered to pay an $8 million fine and surrender its BitLicense, according to the New York Department of Financial Services (NYDFS). The penalty comes as a result of significant failings in the crypto platform’s anti-money laundering and cybersecurity programs, as revealed by NYDFS investigations.
Superintendent Adrienne A. Harris announced the settlement, stating that Genesis Global Trading’s failure to maintain a functional compliance program demonstrated a disregard for the Department’s regulatory requirements. This negligence exposed the company and its customers to potential threats.
The NYDFS found that the trading platform, the only Genesis entity that held the BitLicense, failed to meet the required Bank Secrecy Act and Anti-Money Laundering compliance standards. This also applied to transaction monitoring, Suspicious Activity Report (SAR) filings, and Office of Foreign Assets Control (OFAC) screening, as stated by Harris.
Genesis Global Trading, which is distinct from Genesis Global Capital that filed for bankruptcy in 2023, received the NYDFS’ virtual currency business license in 2018. In its recent announcement, the state regulator clarified that the DCG subsidiary was not involved in the Gemini Earn program.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | 🇺🇸 |
| Sentiment | very negative |
| Relevance Score | 1 |
| People | Adrienne A. Harris |
| Companies | Genesis Global Trading, Genesis Global Capital, Office of Foreign Assets Control, New York Department of Financial Services, Digital Currency Group |
| Currencies | None |
| Securities | None |
