According to the New York regulator, Genesis had compliance failures that violated crypto and cybersecurity regulations, leaving the company “vulnerable to illicit activity.”
Cryptocurrency firm Genesis Global Trading has agreed to settle with the New York Department of Financial Services (NYDFS), surrendering its ability to conduct operations in the state.
According to a Jan. 12 announcement, Genesis agreed to pay a $8 million fine to the NYDFS, cease operations in New York, and surrender its BitLicense — which the firm had held since 2018. The settlement followed an investigation in which New York authorities discovered “significant failings” in Genesis’ Anti-Money Laundering and cybersecurity programs.
“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,” said NYDFS Superintendent Adrienne Harris.
