{"id":9762,"date":"2024-01-12T18:12:35","date_gmt":"2024-01-12T16:12:35","guid":{"rendered":"https:\/\/forklog.com\/en\/genesis-to-pay-8-million-in-settlement-with-new-york-regulator\/"},"modified":"2024-01-12T18:12:35","modified_gmt":"2024-01-12T16:12:35","slug":"genesis-to-pay-8-million-in-settlement-with-new-york-regulator","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/genesis-to-pay-8-million-in-settlement-with-new-york-regulator\/","title":{"rendered":"Genesis to Pay $8 Million in Settlement with New York Regulator"},"content":{"rendered":"<p>Genesis Global Trading, a subsidiary of <span data-descr=\"Digital Currency Group\" class=\"old_tooltip\">DCG<\/span>, has reached an agreement with the New York Department of Financial Services (NYDFS). The decision follows an investigation that &#8220;identified significant failures in anti-money laundering and cybersecurity programs.&#8221;<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">NEW: Superintendent Adrienne A. Harris Announces $8 Million Penalty Against Genesis Global Trading, Inc. After DFS Investigation Finds Significant Failings in Anti-Money Laundering and Cybersecurity Programs<\/p>\n<p>More here: <a href=\"https:\/\/t.co\/lVY2TfitRr\">https:\/\/t.co\/lVY2TfitRr<\/a> <a href=\"https:\/\/t.co\/eiyYsgrWUY\">pic.twitter.com\/eiyYsgrWUY<\/a><\/p>\n<p>\u2014 NYDFS (@NYDFS) <a href=\"https:\/\/twitter.com\/NYDFS\/status\/1745817008422162795?ref_src=twsrc%5Etfw\">January 12, 2024<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;Genesis Global Trading&#8217;s failure to maintain a functional compliance program demonstrated disregard for the Department&#8217;s regulatory requirements and exposed the company and its customers to potential risks,&#8221; the regulator&#8217;s statement said.<\/p>\n<\/blockquote>\n<p>NYDFS conducted two examinations of the company and found violations, including the absence of a dedicated compliance officer.<\/p>\n<p>The agreement includes an $8 million fine, cessation of operations in New York, and the surrender of its BitLicense, which Genesis obtained in 2018.<\/p>\n<p>On November 16, 2022, Genesis Global Capital froze withdrawals and the issuance of new loans, citing &#8220;increased requests&#8221; from clients following the collapse of FTX.<\/p>\n<p>The difficulties originated from the collapse of the hedge fund <span data-descr=\"Three Arrows Capital\" class=\"old_tooltip\">3AC<\/span> in July of the same year. The latter defaulted on obligations to Genesis Global Capital amounting to $2.36 billion. The parent company, DCG, provided support to the firm.<\/p>\n<p>In January 2023, Genesis Global Holdco and its subsidiaries Genesis Asia Pacific and Genesis Global Capital filed for bankruptcy. According to media reports, their liabilities exceed $3 billion, including $900 million in claims from Gemini clients.<\/p>\n<p>In August, DCG promised to reimburse Genesis creditors between 70% and 90% of funds. However, the creditors deemed the offer &#8220;unsatisfactory&#8221; and threatened to block any final bankruptcy deal with such terms.<\/p>\n<p>A month later, DCG proposed a new restructuring plan for the subsidiary firm.<\/p>\n<p>In January 2024, creditors challenged the holding&#8217;s repayment of debt to Genesis.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Genesis Global Trading, a subsidiary of DCG, has reached an agreement with the New York Department of Financial Services (NYDFS). The decision follows an investigation that &#8220;identified significant failures in anti-money laundering and cybersecurity programs.&#8221; NEW: Superintendent Adrienne A. Harris Announces $8 Million Penalty Against Genesis Global Trading, Inc. After DFS Investigation Finds Significant Failings [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":9761,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1237,748,36],"class_list":["post-9762","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-genesis-global-trading","tag-new-york","tag-regulation"],"aioseo_notices":[],"amp_enabled":true,"views":"37","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/9762","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=9762"}],"version-history":[{"count":0,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/9762\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/9761"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=9762"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=9762"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=9762"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}