Summary
Genesis Global Trading, a subsidiary of Digital Currency Group, has settled with the New York Department of Financial Services (DFS) after an investigation revealed anti-money laundering (AML) and cybersecurity deficiencies. As a result, Genesis will surrender its BitLicense and pay an $8 million fine. The DFS found that Genesis failed to maintain a functional compliance program and did not have a dedicated officer to oversee AML compliance. Additionally, the company failed to provide proper disclosures to its customers. An official announcement is expected later today.
Key Points
1. Genesis Global Trading, a subsidiary of Digital Currency Group, has settled with the New York Department of Financial Services (DFS) after an investigation revealed anti-money laundering and cybersecurity deficiencies. The company will surrender its BitLicense and pay an $8 million fine.
2. The DFS found that Genesis Global Trading had failed to maintain a functional compliance program and showed disregard for regulatory requirements, putting both the company and its customers at risk. The firm had not designated a dedicated officer to oversee anti-money laundering compliance.
3. Additionally, the DFS alleges that Genesis Global Trading did not provide proper disclosures to its customers. An official announcement regarding the settlement is expected to be made later today.