Falcon Labs Ltd., a crypto brokerage firm, has been fined approximately $1.7 million by the U.S. Commodity Futures Trading Commission (CFTC) for helping U.S. residents access digital asset exchanges illegally. The CFTC has also ordered the firm to stop operating as an unregistered futures commission merchant (FCM).
According to a statement, the Seychelles-registered firm has been ordered to pay $1,179,008 in disgorgement. However, due to its cooperation with the CFTC’s Division of Enforcement, Falcon Labs will only have to pay a reduced civil monetary penalty of $589,504.
Ian McGinley, the CFTC’s director of enforcement, sees this penalty as a clear message to unregistered digital asset brokers. He stated, “The CFTC is taking the fight one step further by, for the first time, charging an intermediary that inappropriately facilitated access to those exchanges. Today’s action highlights that the CFTC will not hesitate to charge any entities – exchanges or intermediaries – that are providing customers access to digital asset products and services that require registration but have failed to appropriately register.”
The CFTC also called on digital asset intermediaries in similar situations to report their activities to the agency.
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