Summary
Genesis Global Trading, a subsidiary of Digital Currency Group, has agreed to pay $8 million to settle with the New York State Department of Financial Services (NYDFS) after violating rules related to illicit activity and cybersecurity threats. The company has agreed to cease operations in the state and surrender its BitLicense. The NYDFS found that Genesis Global Trading failed to meet standards regarding anti-money laundering compliance, suspicious activity report filings, and cybersecurity. Genesis Global Trading’s cybersecurity risk assessment was deemed insufficient, and the company did not have plans in place to enhance its cybersecurity program.
Key Points
1. Genesis Global Trading, a subsidiary of Digital Currency Group, has agreed to pay $8 million to the state of New York after violating rules related to illicit activity and cybersecurity threats.
2. As part of the settlement, Genesis Global Trading will cease operations in the state of New York and surrender its BitLicense, which is a license for virtual currency activities.
3. The New York State Department of Financial Services found multiple violations by Genesis Global Trading, including failure to meet anti-money laundering compliance standards, inadequate suspicious activity report filings, and insufficient cybersecurity measures.