This decision is the result of an enforcement investigation conducted by DFS Inspector Adrienne A. Harris that uncovered a number of regulatory violations.
The investigation, which began with audits conducted from May 2018 through March 2019, revealed that Genesis had numerous violations of anti-money laundering protocols and cybersecurity measures. The subsequent investigation confirmed that the company failed to comply with strict virtual currency regulations and cybersecurity standards set by authorities.
Genesis Global Trading has faced regulatory scrutiny before. It has been involved in legal disputes with both the Securities and Exchange Commission (SEC) and the New York Attorney General over allegations of unregistered securities offerings. The company has also been linked to bankrupt entities Three Arrows Capital and Alameda Research, which were at the center of broader industry turmoil.
