According to Odaily, the United States Commodity Futures Trading Commission (CFTC) has announced that it has reached a settlement with cryptocurrency brokerage firm Falcon Labs. As part of the settlement, Falcon Labs will pay approximately $1.8 million in illicit gains and fines.
In a notice dated May 13, the CFTC stated that Falcon Labs, a subsidiary of FalconX, failed to register as a futures commission merchant. The settlement agreement requires FalconX to cease providing services to US residents and to pay approximately $1.2 million in illicit gains and $600,000 in civil penalties.
This case underscores the CFTC's ongoing efforts to regulate the cryptocurrency industry and ensure compliance with existing financial regulations. The hefty fine imposed on Falcon Labs serves as a warning to other cryptocurrency firms operating in the US, emphasizing the importance of adhering to regulatory requirements.