On January 12, 2024, Genesis Global Trading incurred an $8 million fine from the New York Department of Financial Services (NYDFS). The NYDFS had granted Genesis Global Trading a license to engage in virtual currency business in the State of New York back in 2018. This cryptocurrency brokerage primarily serves institutional investors and operates as a subsidiary of Digital Currency Group.

The violations leading to the fine encompass:

• Non-compliance with the DFS’s regulations regarding virtual currency and cybersecurity.
• Failures in BSA/AML compliance, OFAC screening, and adherence to cybersecurity standards.
• Deficiencies in the establishment of policies and procedures for transaction monitoring and filing Suspicious Activity Reports (SARs).

As part of the settlement, Genesis Global Trading has agreed to surrender its BitLicense and is currently in the process of winding down its operations.