Genesis Global Trading Ordered To Pay $8,000,000 Fine

According to the latest reports, Genesis Global Trading, has been ordered to pay an $8,000,000 fine. Check out the latest reports about this below.

A New York-based financial regulator has ordered cryptocurrency firm Genesis Global Trading to pay an $8 million fine after it was found to be in violation of the law.

The New York State Department of Financial Services (DFS) has released a statement saying that the crypto trading branch of Digital Currency Group (DCG) failed to comply with virtual currency and cybersecurity regulations, which left it susceptible to hacks and exploits.

After conducting an investigation, the DFS discovered that Genesis not only failed to meet security standards but also did not comply with the requirements of the Bank Secrecy/Anti-Money Laundering Act.

The DFS investigation found that Genesis did not file SARs and failed to screen with OFAC.

As stated by DFS Superintendent Adrienne A. Harris in the press release,

“DFS’s virtual currency and cybersecurity regulations are often cited as the gold standard, providing clear and stringent requirements to protect consumers and safeguard institutions from bad actors.

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.”

Genesis Global Trading will be required to surrender its BitLicense, which is mandatory to operate digital asset firms in New York, due to violations.

The New York Department of Financial Services (DFS), led by Harris, has issued fines worth $140 million to cryptocurrency companies, such as Coinbase and Paxos, to date, according to the press release.

Other than this, the crypto space has been roaming with all kinds of new details about the spot BTC ETF approvals.

The CEO of Coinbase, Brian Armstrong, has shared his thoughts on the impact of the recently approved spot market Bitcoin (BTC) exchange-traded funds.