Genesis Global Resolves New York Legal Dispute with $8 Million Settlement

Genesis Global Trading, a firm specializing in cryptocurrency lending, has taken a significant step by opting to discontinue its business operations in the state of New York and relinquish its BitLicense. This decision is part of a comprehensive settlement aimed at resolving charges related to money laundering and fraud. New York State Department of Financial Services (DFS) Superintendent Adrienne A. Harris made an official announcement on Friday, revealing that Genesis Global Trading will contribute $8 million to settle the legal matters.

The foundation of this settlement lies in the inadequacy of Genesis Global Trading's compliance program, a deficiency pointed out by Superintendent Adrienne Harris. This shortcoming has been emphasized as indicative of the company's disregard for regulatory standards, thereby exposing both the firm and its clientele to potential risks. These particulars were originally reported by Fortune.

According to the terms laid out in the settlement, Genesis Global Trading will not only put a halt to its operations within the boundaries of New York but also align its actions with an ongoing lawsuit initiated by the New York Attorney General's Office back in October. The lawsuit alleges deceptive practices by Genesis Global, along with its parent entities Digital Currency Group and Gemini Trust, wherein investors were purportedly misled by the concealment of losses exceeding $1 billion. The New York Attorney General's Office has yet to provide immediate responses to inquiries regarding the implications of the settlement on the ongoing case.

Genesis Global Trading asserts that the entity cited in the complaint ceased its operations in September of the preceding year and has been gradually winding down due to "business reasons." In a statement issued to Bitsday, Genesis underscored the considerable measures taken to rectify historical deficiencies outlined in the lawsuit, expressing contentment with the resolution of the matter.

The cryptocurrency lending firm has encountered a series of legal challenges since the preceding year. In January, the Securities Exchange Commission (SEC) brought charges against Genesis, accusing the firm of selling unregistered securities totaling billions of dollars to hundreds of thousands of investors. Consequently, the firm declared bankruptcy in the same month and is presently entangled in legal proceedings to recuperate lost investor funds.

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