Genesis Global Trading, Fined IDR 124.4 Billion By New York Financial Authority

Genesis Global Trading, must pay a fine of 8 million US dollars. (photo: x @theblock_)

New York's Ministry of Financial Services stated that Digital Currency Group's subsidiary, Genesis Global Trading, had to pay a fine of USD 8 million (IDR 124.4 billion). They also had to hand over their licenses after the results of the investigation found significant failures in the anti-money laundering (AML) and cybersecurity programs at the company.

Genesis, a crypto brokerage and market-maker company, failed to maintain an effective compliance program with anti-money laundering requirements and the Bank Secrecy Act, and did not submit reports of suspicious activities requiring financial institutions to notify law enforcement of certain transactions.

The company has not yet responded to a request for comment.

"The failure of Genesis Global Trading to maintain a functional compliance program demonstrates indifference to the Ministry's regulatory requirements and opens opportunities for companies and customers to face potential threats," Superintendent NYDFS Adrienne Harris said in a statement.

As part of the fine, Genesis will hand over its "BitLicense", which crypto companies need to be able to offer certain services in the state of New York. BitLicense requires companies to comply with customer recognition requirements, anti-money laundering, and capital requirements.

Genesis has been holding BitLicense since 2018.

The move follows a bankruptcy filing by Genesis Global Capital, another crypto institution affiliated with the Digital Currency Group, after being hit by the collapse of the FTX crypto exchange last year. The entity does not hold BitLicense from NYDFS