{"id":11616,"date":"2024-05-14T04:15:26","date_gmt":"2024-05-14T04:15:26","guid":{"rendered":"https:\/\/www.bitrabo.com\/discover\/crypto-firm-falcon-labs-settles-unregistered-activities-case-with-cftc-for-1-7m\/"},"modified":"2024-05-14T04:17:39","modified_gmt":"2024-05-14T04:17:39","slug":"falcon-labs-resolves-case-with-cftc-for-unregistered-activities-with-1-7m-settlement","status":"publish","type":"post","link":"https:\/\/www.bitrabo.com\/discover\/falcon-labs-resolves-case-with-cftc-for-unregistered-activities-with-1-7m-settlement\/","title":{"rendered":"Falcon Labs Resolves Case with CFTC for Unregistered Activities with $1.7M Settlement"},"content":{"rendered":"\n<p>The Commodity Futures Trading Commission (CFTC) has taken action against Falcon Labs, a crypto brokerage firm based in the Seychelles, for not registering as a futures commission merchant (FCM) in the US.<\/p>\n<p>This marks the first time the CFTC has enforced action against an unregistered futures commission merchant providing unauthorized access to crypto exchanges.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"CFTC_Crypto_Crackdown_on_Falcon_Labs\"><\/span>CFTC Crypto Crackdown on Falcon Labs<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Under the CFTC order, Falcon Labs must cease acting as an unregistered FCM, particularly by facilitating US individuals&#8217; access to digital asset derivatives trading platforms.<\/p>\n<p>Falcon Labs is also required to pay a disgorgement of $1.7 million and a civil penalty of $589,000 as part of its cooperation with the CFTC&#8217;s Division of Enforcement.<\/p>\n<p>The Director of Enforcement at the CFTC, Ian McGinley, stressed the agency&#8217;s dedication to market integrity and registration compliance, stating that they will not tolerate exchanges or intermediaries failing to register or comply with rules.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Unregistered_Activities_in_the_Crypto_Derivatives_Market\"><\/span>Unregistered Activities in the Crypto Derivatives Market<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>From October 2021 to at least March 27, 2023, Falcon Labs solicited and accepted orders for digital asset derivatives from US customers and facilitated trading on various digital asset exchanges.<\/p>\n<p>Falcon Labs provided direct exchange access through main accounts and sub-accounts without requiring or providing customer-identifying information to the exchanges.<\/p>\n<p>During this period, Falcon Labs collected around $1.1 million in net fees from customers engaging in crypto-derivative transactions.<\/p>\n<p>After the CFTC&#8217;s complaint against Binance entities and Samuel Lim in 2023, Falcon Labs improved controls for identifying customer locations.<\/p>\n<p><\/p>\n<p>Featured image from Shutterstock, chart from TradingView.com <\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Commodity Futures Trading Commission (CFTC) has taken action against Falcon Labs, a crypto brokerage firm based in the Seychelles, for not registering as a futures commission merchant (FCM) in the US. This marks the first time the CFTC has enforced action against an unregistered futures commission merchant providing unauthorized access to crypto exchanges. CFTC [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":11617,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"slim_seo":{"title":"Falcon Labs Resolves Case with CFTC for Unregistered Activities with $1.7M Settlement - Bitrabo","description":"The Commodity Futures Trading Commission (CFTC) has taken action against Falcon Labs, a crypto brokerage firm based in the Seychelles, for not registering as a"},"footnotes":""},"categories":[316],"tags":[4095,2938,796,1418,504,4093,1757,1988,3659,4094],"class_list":["post-11616","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-news","tag-1-7m","tag-activities","tag-case","tag-cftc","tag-crypto","tag-falcon","tag-firm","tag-labs","tag-settles","tag-unregistered"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/posts\/11616","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/comments?post=11616"}],"version-history":[{"count":0,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/posts\/11616\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/media\/11617"}],"wp:attachment":[{"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/media?parent=11616"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/categories?post=11616"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/tags?post=11616"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}