Genesis Global Trading to Pay $8 Million Settlement to New York State
Genesis Global Trading, a subsidiary of Digital Currency Group, has agreed to pay $8 million as part of a settlement with the New York State Department of Financial Services (NYDFS). The NYDFS found that Genesis Global Trading had violated rules by being vulnerable to illicit activity and cybersecurity threats. As part of the settlement, the company will cease operations in the state and surrender its BitLicense.
Multiple Violations Found
After conducting routine examinations and an enforcement investigation, the NYDFS discovered that Genesis Global Trading failed to meet standards for anti-money laundering compliance, suspicious activity report filings, and cybersecurity. The regulator also noted that the company’s cybersecurity risk assessment was incomplete and did not include necessary improvements or plans for enhancing its program.
Hot Take: Genesis Global Trading Pays Price for Regulatory Noncompliance
Genesis Global Trading’s failure to maintain a functional compliance program has resulted in an $8 million settlement with the New York State Department of Financial Services. This case highlights the importance of meeting regulatory requirements and implementing robust cybersecurity measures in the cryptocurrency industry. Companies must prioritize anti-money laundering compliance and ensure the security of their systems to protect both themselves and their customers from potential threats. This settlement serves as a reminder that regulatory oversight is increasing, and noncompliant businesses will face significant consequences.
By
By
By
By
By