Genesis Global Settles NY Lawsuit with $8M Payment: Crypto Update

• Genesis Global Trading Settles Fraud Charges and Anti-Money Laundering Accusations
• Significant Compliance Failures Noted
• Genesis Global to Cease Operations in New York State
• Response from Genesis Global and NYAG's Office
• Continuous Legal Issues

Genesis Global Trading Settles Fraud Charges and Anti-Money Laundering Accusations

Genesis Global Trading has resolved to pay a settlement amount of $8 million and revoke its BitLicense to resolve fraud allegations and anti-money laundering charges levelled against it. This was announced on Friday by Adrienne A. Harris, Superintendent of the New York State Department of Financial Services (DFS).

Significant Compliance Failures Noted

The Superintendent stated that Genesis Global Trading's inability to uphold an effective compliance program highlighted an indifference towards the Department's regulatory standards. This negligence exposed the company and its clientele to possible risks. These comments were initially sighted in a Fortune publication.

Genesis Global to Cease Operations in New York State

As part of the settlement, Genesis has agreed to halt its operations within the state. This decision comes during an ongoing lawsuit that was initiated in October by the New York Attorney General's Office. The lawsuit accuses Genesis Global of deceiving investors by obscuring over $1 billion in losses. This alleged fraudulent activity is purportedly linked to its parent company, Digital Currency Group, and Gemini Trust.

Response from Genesis Global and NYAG's Office

In response to inquiries about the implications of the settlement on the ongoing case, the NYAG's office did not immediately provide any comments. Similarly, Genesis has not yet responded to requests for comments on this matter.

Continuous Legal Issues

Genesis has battled a series of legal challenges since the previous year. In one notable instance from January, the Securities Exchange Commission (SEC) accused Genesis of selling unregistered securities worth billions of dollars to numerous investors, spanning into the hundreds of thousands. The company declared bankruptcy within the same month and continues to be involved in court proceedings, with efforts underway to recover millions in lost investor funds.

Edited by Jonathan Stoker