Genesis Global Trading, Inc.
New York, NY
NYDFS announced an $8 million penalty against Genesis Global Trading, Inc. in January 2024 for cybersecurity and virtual currency regulation violations. Genesis surrendered its BitLicense and ceased operations in New York as part of the resolution. The company had failed to adequately address compliance deficiencies identified during NYDFS's first audit (May 2018–March 2019). A second audit covering April 2019–March 2022 found continued failures in both cybersecurity and virtual currency compliance despite significant business growth. This action highlights NYDFS's ongoing enforcement focus on virtual currency licensees and cybersecurity requirements.
Verified from source: NYDFS imposed an $8 million penalty on Genesis Global Trading, Inc. for compliance failures violating DFS's virtual currency and cybersecurity regulations, including BSA/AML compliance, transaction monitoring, SAR filings, OFAC screening, and cybersecurity deficiencies. Genesis Global Trading will surrender its BitLicense in connection with the settlement.
- Signals NYDFS willingness to revoke BitLicenses for persistent compliance failures
- Underscores the importance of remediating deficiencies identified in regulatory audits
- Relevant to BaaS/fintech firms operating under state virtual currency licenses
- OfficialNYDFS Press Release
- BlogData Protection Report
- NewsFortune Crypto