Genesis Global Trading, a subsidiary of Digital Current Group, has reportedly reached a settlement with New York’s Department of Financial Services after an investigation revealed anti-money laundering and cybersecurity deficiencies. It will surrender its BitLicense, New York’s license for virtual currency activities, and pay a fine of $8 million.
In a statement shared with Fortune, which first reported the news, Superintendent Adrienne Harris said, “Genesis Global Trading’s failure to maintain a functional compliance program demonstrates a disregard for the department’s regulatory requirements and exposes the company and its customers to potential threats.” “I will give it to you,” he said.
Harris’ statement comes after DFS investigated Genesis twice and discovered AML and cybersecurity failures that the company addressed with “little effort or resources.” He appears to have no dedicated officer to oversee AML compliance.
DFS also claims that Genesis failed to provide adequate information to its customers.
It is reported that an official announcement will be made around today.
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