Crypto Brokerage Firm Falcon Labs Set To Pay Over $1,768,000 in Settlement With CFTC

CFTC announces .8M settlement against brokerage firm FalconX

The regulator reported the firm voluntarily improved its practices after the CFTC’s civil suit with Binance and its former CEO Changpeng Zhao.

The United States Commodity Futures Trading Commission (CFTC) announced that it had both filed and settled charges against cryptocurrency brokerage firm Falcon Labs for roughly $1.8 million in disgorgement and penalties.

In a May 13 notice, the CFTC said Falcon Labs, owned by FalconX, had failed to register as a futures commission merchant, “inappropriately facilitat[ing] access to digital asset exchanges.” The settlement required FalconX to cease offering services to U.S. residents and pay roughly $1.2 million in disgorgement and $600,000 in civil monetary penalties.

“The CFTC’s enforcement program has made clear it will not tolerate digital asset exchanges that fail to register with the CFTC or comply with the agency’s rules that maintain integrity in the derivatives markets,” said Enforcement Director Ian McGinley. “And now the CFTC is taking the fight one step further by, for the first time, charging an intermediary that inappropriately facilitated access to those exchanges.”

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