CFTC Settles with FalconX

CFTC Settles with FalconX

The United States Commodity Futures Trading Commission (CFTC) reported that it has filed and simultaneously settled charges with cryptocurrency brokerage firm Falcon Labs, involving approximately $1.8 million in disgorgement and penalties.

According to a notice issued on May 13, Falcon Labs, a subsidiary of FalconX, did not register as a futures commission merchant and was found to be “inappropriately facilitating access to digital asset exchanges.”

As part of the settlement, FalconX is required to halt its services to US residents and pay around $1.2 million in disgorgement and $600,000 in civil monetary penalties.

Ian McGinley, the CFTC’s Enforcement Director, emphasized the agency’s commitment to regulatory compliance within the derivatives markets.

“The CFTC’s enforcement program has consistently shown that it will not tolerate digital asset exchanges that evade registration or fail to adhere to our rules,” he stated.