Falcon Labs, Ltd., a crypto prime brokerage firm, has reached a settlement with the US Commodity Futures Trading Commission (CFTC), marking the agency’s first case against an unregistered firm of its kind.
According to a statement released on Monday, the Seychelles-based company was found to be an intermediary that facilitated its customers’ trading on various digital asset exchanges.
The CFTC stated that this activity required Falcon Labs to register as a futures commission merchant (FCM).
The CFTC’s recent order marks the inaugural action against an unregistered FCM that improperly provided access to digital asset exchanges.
Falcon Labs has neither admitted nor denied the findings but was ordered to pay fines exceeding $1.7 million.
