FalconX hit with $1.7 million fine for regulatory violations
The Commodity Futures Trading Commission (CFTC) has fined crypto trading firm FalconX a total of $1.7 million. CFTC said the penalty relates to the Seychelles-based brokerage platform’s failure to register as futures commission merchant (FCM). In a press release, the Commodity Futures Trading Commission (CFTC) notes that the filing and settling of charges against Falcon Labs marks the first such action against an unregistered crypto derivatives exchange provider. The CFTC alleged in its filing that FalconX illegally offered its crypto derivatives products to US customers between October 2021 and March 2023. Acting as an intermediary, the platform created accounts and sub-accounts for customers in the US, bypassing KYC requirements. It’s only after the CFTC filed its complaint against Binance and former CEO Changpeng Zhao that Falcon Labs improved its customer-identifying processes. CFTC fines FalconX, issues cease & desist order Followi...