Genesis Global Trading agrees to leave New York and pay $8 million settlement

Genesis Global Trading, a subsidiary of Digital Currency Group, will pay $8 million to the state of New York after its financial regulator said the company violated rules by being vulnerable to illicit activity and cybersecurity threats.

Genesis Global Trading settled with the New York State Department of Financial Services on Friday, agreeing to cease operations in the state and surrender its BitLicense — a license for virtual currency activities in the state.

“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,” NYDFS Superintendent Adrienne A. Harris said in a statement.

Multiple violations

After routine examinations and an enforcement investigation, NYDFS said it found that the firm failed to meet standards around anti-money laundering compliance, suspicious activity report filings and cybersecurity.

“The cybersecurity risk assessment completed by GGT in December 2022, itself years late, was not sufficiently comprehensive and did not include identification of areas, systems, or processes that required material improvement, updating, or redesign, or plans for 11 enhancing GGT’s cybersecurity program to achieve full compliance with the requirements of the Cybersecurity Regulation,” the regulator said in the consent order.

Fortune first reported on the news of the settlement.

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