The cryptocurrency lending company was fined 8 million dollars! What is the matter?

A recent report by Fortune magazine revealed that New York's Department of Financial Services (DFS) has agreed to a fine with Genesis Global, a subsidiary of Digital Currency Group (DCG).
In a statement shared with Fortune, DFS chief Adrienne Harris expressed concerns about Genesis' failure to maintain operational compliance, saying the company's past approach showed a disregard for the regulatory requirements the company and its customers face. exposed to potential threats.
Before the bear market began in late 2021, Genesis was involved in its lending process with bankrupt companies such as Tri-Arrow Capital (3AC) and Alameda Research (Alameda Research), which led to its bankruptcy in early 2023.
Subsequently, Genesis was sued by the Securities and Exchange Commission (SEC) and the New York Attorney General's Office for offering unregistered securities.

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Although Genesis was not directly involved in the legal battles, it announced the closure of its trading platform in September 2023 due to the parent company's defeat in court. After the closure, the company was investigated.
New York's Department of Financial Services found that Genesis did not conduct advanced screening of employees and third-party service providers as required by the Treasury Department. Inadequate cyber security measures, including failure to review and approve annual policies and inadequate protection of sensitive data and non-public personal information, were also identified by this department. As a result, the company has agreed to pay $8 million in fines as part of the settlement.
According to Fortune, this relatively small amount reflects Genesis' cooperation during the investigation and its efforts to update its programs. However, Genesis has also agreed to cease all services in New York and surrender its BitLicense.