(Bloomberg) -- Genesis Global Trading agreed to pay a $8 million penalty to New York for compliance failures that violated the state’s cryptocurrency and cybersecurity regulations. 

As part of the settlement, the crypto broker lost its ability to operate in New York under the state’s Department of Financial Services’ BitLicense program. Genesis Global Trading, an affiliate of Barry Silbert’s Digital Currency Group, shuttered operations in September.  

“Genesis Global Trading’s failure to maintain a functional compliance program demonstrated a disregard for the department’s regulatory requirements and exposed the company and its customers to potential threats,” Adrienne A. Harris, superintendent of the agency, said in a statement Friday. 

The trading shop was once one of the largest derivatives trading desks in the digital-asset sector. The shutdown came after another of DCG’s related companies, crypto lender Genesis Global Holdco, filed for bankruptcy last January. The crypto lender and its former business partner Gemini Trust Co., face a suit brought against them from the US Securities and Exchange Commission. 

Genesis Global Trading was the only Genesis entity that was licensed by New York and was not involved in the Gemini Earn program.

The agency found that Genesis Global Trading failed to meet required standards in Bank Secrecy Act/Anti-Money Laundering compliance, transaction monitoring, Suspicious Activity Report filings, Office of Foreign Assets Control screening, and cybersecurity.

“Genesis had taken substantial measures to address these historical deficiencies and is pleased to resolve this matter, a spokesperson for the trading firm said in a statement. “Genesis appreciates the DFS acknowledgment of management’s investment and efforts during and after the examination period.” 

Since its founding in 2013, Genesis handled $116.5 billion in spot trading and was one of the top institutional derivatives desks by volume, according to its website history. 

--With assistance from Allyson Versprille.

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