👀👀👀The U.S. Commodity Futures Trading Commission Takes Legal Action Against Falcon Labs
The U.S. Commodity Futures Trading Commission today issued an order simultaneously filing and settling an action against Falcon Labs, Ltd., organized under the laws of the Seychelles, for the entity’s failure to register as a futures commission merchant (FCM) with the CFTC as required. This marks the first time the CFTC has taken action against an unregistered FCM that improperly facilitated access to a digital asset exchange.
Falcon Labs was ordered to cease providing U.S. persons with access to a digital asset derivatives trading platform and to cease acting as an unregistered FCM. The order also requires Falcon Labs to pay $1,179,008 in disgorgement and a civil penalty of $589,504. The reduction in the civil penalty reflects Falcon Labs’ substantial cooperation with the CFTC’s Division of Enforcement, as detailed in the order.
“The CFTC’s enforcement program has made clear that digital asset exchanges that are not registered with the CFTC or that fail to comply with the agency’s rules for maintaining the integrity of the derivatives markets will not be tolerated,” said Ian McGinley, Director of Enforcement.
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