FalconX Settles With CFTC for $1.8M Over Failure to Register as Futures Commission Merchant

FalconX Settles With CFTC for $1.8M Over Failure to Register as Futures Commission Merchant


FalconX will pay $1.8 million to settle newly-announced charges from the Commodity Futures Trading Commission (CFTC) that the crypto trading firm violated commodities laws by failing to register as a futures commission merchant (FCM), according to a Monday announcement from the regulator.

Through its “Edge” product, FalconX acted as a crypto prime broker, offering institutional clients – including some based in the U.S. – with access to various crypto exchanges to trade derivatives, including futures and swaps, the CFTC said in a press release Monday.

Though FalconX describes itself as the “largest digital asset prime brokerage” it was not properly registered with the CFTC. One of FalconX’s portfolio companies, FalconX

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