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

The U.S. Commodity Futures Trading Commission (CFTC) is ordering the Seychelles-registered cryptocurrency brokerage firm Falcon Labs to pay nearly $2 million to settle regulatory violations.

CFTC says that Falcon Labs failed to properly register with the regulator and will consequently pay a total of $1,768,512 in the regulator’s first action against an unregistered futures commission merchant (FCM).

“Falcon Labs is ordered to cease and desist from acting as an unregistered FCM by providing U.S. persons access to digital asset derivatives trading platforms. The order also requires Falcon Labs to pay $1,179,008 in disgorgement and a $589,504 civil monetary penalty.”

According to the CFTC, the crypto brokerage firm “solicited or accepted orders” from US-based customers from around October 2021 to at least March 27th of 2023.

“Throughout this period, Falcon Labs functioned as an intermediary facilitating customer trading on various digital asset exchanges, including institutional customers located in the U.S. Falcon Labs provided its customers with direct access to exchanges by first creating a main account in its own name and then creating associated sub-accounts. The exchanges generally did not require, and Falcon Labs generally did not provide, customer-identifying information for the sub-account holders.”

Falcon Labs’ settlement comes a little over a week since the chair of the CFTC, Rostin Behnam, warned that the cryptocurrency industry will “probably see in the next six to 18 months or six to 24 months another cycle of enforcement actions”.

Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox Check Price ActionFollow us on X, Facebook and TelegramSurf The Daily Hodl Mix

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Generated Image: Midjourney

The post Crypto Brokerage Firm Falcon Labs Set To Pay Over $1,768,000 in Settlement With CFTC appeared first on The Daily Hodl.