- The New York Department of Financial Services (NYDFS) said Genesis Global Trading will pay an $8 million fine and waive its BitLicense.
- NYDFS said in a press release that its investigation found the cryptocurrency platform had serious deficiencies in its anti-money laundering and cybersecurity programs.
- Genesis Global Trading is a subsidiary of Digital Current Group and received BitLicense in 2018.
The New York Department of Financial Services (NYDFS) announced an $8 million fine against Genesis Global Trading, a subsidiary of cryptocurrency company Digital Current Group.
Chancellor Adrienne A. Harris also announced that Genesis would transfer its BitLicense as part of a settlement following an investigation by New York regulators. According to NYDFS, an investigation into the activities of cryptocurrency platforms found serious deficiencies in their anti-money laundering and cybersecurity programs.
“Genesis Global Trading’s failure to maintain a functional compliance program disregarded the department’s regulatory requirements and exposed the company and its customers to potential threats.said Superintendent Harris.
The regulator found that the trading platform, the only Genesis entity with a BitLicense, failed to meet Bank Secrecy Act and anti-money laundering compliance standards. This also applies to transaction monitoring, Suspicious Activity Report (SAR) filings, and Office of Foreign Assets Control (OFAC) screening, Harris added in the press release.
Unlike Genesis Global Capital, which filed for bankruptcy in 2023, Genesis Global Trading received permission for virtual currency business from NYDFS in 2018.
Read more: Genesis Global Trading closes OTC trading platform.
In today’s announcement, state regulators said the DCG subsidiary “did not participate in the Gemini Earn program.”