Genesis Global Trading Faces $8 Million Fine

Genesis Global Trading has agreed to a settlement with the New York Department of Financial Services (NYDFS). The company, known for its crypto operations, will pay a fine of $8 million, relinquish its BitLicense obtained since 2018, and cease all operations in New York. This move followed an investigation by New York authorities, exposing flaws in Genesis’ Anti-Money Laundering and cybersecurity protocols, rendering the firm susceptible to illicit activities. The New York State Department of Financial Services (NYDFS) Superintendent Adrienne Harris mentioned: “DFS’s virtual currency
and cybersecurity
Cybersecurity

Cybersecurity is a blanket term that refers to the protection of computer systems and networks from the theft.More broadly speaking, cybersecurity can also represent countermeasures against damage to hardware, software, or electronic data, as well as from the disruption or misdirection of the services they provide.It was not long ago that the term cybersecurity not exist as it was first used in 1989. In today’s vernacular cybersecurity, refers to measures taken to protect a computer or computer

Cybersecurity is a blanket term that refers to the protection of computer systems and networks from the theft.More broadly speaking, cybersecurity can also represent countermeasures against damage to hardware, software, or electronic data, as well as from the disruption or misdirection of the services they provide.It was not long ago that the term cybersecurity not exist as it was first used in 1989. In today’s vernacular cybersecurity, refers to measures taken to protect a computer or computer
Read this Term 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.”

The DFS’ investigation pointed to flaws in crucial areas such as the Bank Secrecy Act, anti-money laundering compliance, transaction monitoring, Suspicious Activity Report filings, Office of Foreign Assets Control screening, and cybersecurity.

Licensed in 2018, Genesis Global Trading operated under the purview of the NYDFS. However, this settlement
Settlement

Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer’s name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2

Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer’s name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2
Read this Term necessitates that Genesis surrender its BitLicense.

Last year, Genesis Global Trading announced the imminent closure of its US-focused spot crypto trading operations. The decision conveyed to clients through email took effect on September 30, 2023. This development unfolded following Genesis Global’s legal disputes with FTX.

Clients were advised to settle all trades by September 21, 2023, with any remaining accounts set to be closed. The official statement attributed this move to voluntary reasons related to the overall business strategy.

Genesis Global Trading’s Legal Battles

Amid the closure, GGC International Limited, an entity affiliated with Genesis, is poised to step in and continue the operation of Genesis Global Trading’s spot and derivatives trading services. Notably, Genesis Global Trading managed to escape Genesis Global’s recent financial troubles, which included a legal dispute with the now-bankrupt cryptocurrency exchange FTX.

Additionally, the legal hurdles for Genesis Global do not end there, as the company and its Founder, Barry Silbert, face a lawsuit from Gemini. The cryptocurrency exchange alleges fraudulent activities related to a digital asset lending platform operated by both companies.

In the broader crypto landscape, Genesis Global and Gemini faced legal action from the SEC in January, accused of offering unregistered securities through their crypto lending product. Additionally, a class-action lawsuit initiated by investors against Gemini concerning the Gemini Earn Program adds another layer to the legal challenges faced by these entities. Genesis Global Trading has agreed to a settlement with the New York Department of Financial Services (NYDFS). The company, known for its crypto operations, will pay a fine of $8 million, relinquish its BitLicense obtained since 2018, and cease all operations in New York.

This move followed an investigation by New York authorities, exposing flaws in Genesis’ Anti-Money Laundering and cybersecurity protocols, rendering the firm susceptible to illicit activities.

The New York State Department of Financial Services (NYDFS) Superintendent Adrienne Harris mentioned: “DFS’s virtual currency and cybersecurity
Cybersecurity

Cybersecurity is a blanket term that refers to the protection of computer systems and networks from the theft.More broadly speaking, cybersecurity can also represent countermeasures against damage to hardware, software, or electronic data, as well as from the disruption or misdirection of the services they provide.It was not long ago that the term cybersecurity not exist as it was first used in 1989. In today’s vernacular cybersecurity, refers to measures taken to protect a computer or computer

Cybersecurity is a blanket term that refers to the protection of computer systems and networks from the theft.More broadly speaking, cybersecurity can also represent countermeasures against damage to hardware, software, or electronic data, as well as from the disruption or misdirection of the services they provide.It was not long ago that the term cybersecurity not exist as it was first used in 1989. In today’s vernacular cybersecurity, refers to measures taken to protect a computer or computer
Read this Term 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.”

The DFS’ investigation pointed to flaws in crucial areas such as the Bank Secrecy Act, anti-money laundering compliance, transaction monitoring, Suspicious Activity Report filings, Office of Foreign Assets Control screening, and cybersecurity.

Licensed in 2018, Genesis Global Trading operated under the purview of the NYDFS. However, this settlement
Settlement

Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer’s name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2

Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer’s name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2
Read this Term necessitates that Genesis surrender its BitLicense.

Last year, Genesis Global Trading announced the imminent closure of its US-focused spot crypto trading operations. The decision conveyed to clients through email took effect on September 30, 2023. This development unfolded following Genesis Global’s legal disputes with FTX.

Clients were advised to settle all trades by September 21, 2023, with any remaining accounts set to be closed. The official statement attributed this move to voluntary reasons related to the overall business strategy.

Genesis Global Trading’s Legal Battles

Amid the closure, GGC International Limited, an entity affiliated with Genesis, is poised to step in and continue the operation of Genesis Global Trading’s spot and derivatives trading services. Notably, Genesis Global Trading managed to escape Genesis Global’s recent financial troubles, which included a legal dispute with the now-bankrupt cryptocurrency exchange FTX.

Additionally, the legal hurdles for Genesis Global do not end there, as the company and its Founder, Barry Silbert, face a lawsuit from Gemini. The cryptocurrency exchange alleges fraudulent activities related to a digital asset lending platform operated by both companies.

In the broader crypto landscape, Genesis Global and Gemini faced legal action from the SEC in January, accused of offering unregistered securities through their crypto lending product. Additionally, a class-action lawsuit initiated by investors against Gemini concerning the Gemini Earn Program adds another layer to the legal challenges faced by these entities.