#BTC $Just In: Genesis Global Trading Inks $8M Settlement With NYDFS

As per a signed agreement, the New York State Department of Financial Services (NYDFS) has settled with Genesis Global Trading, which involves an $8 million fine.

Genesis Loses its BitLicense

Genesis Global Trading, a subsidiary of Digital Currency Group (DCG), accepted the settlement with NYDFS on the condition that it would stop its operations in New York and surrender its BitLicense for virtual currency activities in the state. The firm also agreed to pay $8 million to the state after it was charged with violating regulations related to anti-money laundering and fraud.

NYDFS Superintendent Adrienne A. Harris said that Genesis Global exposed itself and its customers to illicit activities and cybersecurity risks.

“Genesis Global Trading’s lack of a functional compliance program showed a disregard for the Department’s regulatory requirements and put the company and its customers in danger,” Harris said in a statement.

In October 2023, New York Attorney General (NYAG) Letitia James sued Genesis, Gemini, and DCG. She alleged that the trio scammed 230,000 investors of more than $1 billion through the Gemini Earn program.

Genesis Global was specifically accused of lending to risky borrowers, contradicting the low-risk image projected by Gemini.