United States of America: Announced settlement in CFTC investigation against Falcon Labs for allegedly providing customers access to digital asset derivatives trading platforms without registration

On 13 May 2024, the Commodity Futures Trading Commission (CFTC) announced that it reached a settlement with Falcon Labs, based in Seychelles, over its alleged failure to register as a futures commission merchant (FCM). The CFTC stated that Falcon Labs, as an intermediary, facilitated United States customers' access to digital asset derivatives trading platforms without registration. Falcon Labs has been ordered to cease such activities and is subjected to a financial penalty comprising USD 1'179'008 in disgorgement and a USD 589'504 civil monetary penalty. The CFTC noted that the penalty was reduced due to Falcon Labs' cooperation with the CFTC's Division of Enforcement.