Genesis settles with New York DFS, will forfeit BitLicense and pay $8 million fine: Fortune

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The Block2024/01/12 14:46

By:The Block

Quick Take Digital Currency Group subsidiary Genesis will reportedly give up its BitLicense and pay a $8 million fine. The firm allegedly made “little effort” to address AML and customer-disclosure deficiencies.

Genesis settles with New York DFS, will forfeit BitLicense and pay $8 million fine: Fortune image 0

Genesis Global Trading, a subsidiary of Digital Currency Group, has reportedly settled with the New York Department of Financial Services after an investigation uncovered anti-money laundering and cybersecurity deficiencies. It will give up its BitLicense — New York's license for virtual currency activities — and pay an $8 million fine.

“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,” Superintendent Adrienne Harris said in a statement shared with Fortune, who first reported the news.

Harris' statement comes after DFS examined Genesis twice, and found AML and cybersecurity failures that the firm addressed with "little effort or resources" — apparently having no dedicated officer to oversee AML compliance.

DFS also claims Genesis failed to provide proper disclosures to its customers.

An official announcement is reportedly coming later today.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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