FalconX Fined $1.8M by CFTC, Ceases U.S. Crypto Derivatives Trading
After losing half of its customers due to KYC measures initiated by the CFTC against Binance, FalconX agreed to pay $1,179,008 in disgorgement and a $589,504 civil penalty, which requires it to cease unregistered FCM activities
FalconX reached an agreement with the CFTC for $1.8 million, allegedly violating commodity laws by operating as a futures commission merchant (FCM) without registration. The company is known as a digital asset prime broker, providing U.S.-based institutional clients access to crypto exchanges for derivatives trading. After losing half of its customers due to KYC measures initiated by the CFTC against Binance, FalconX agreed to pay $1,179,008 in disgorgement and a $589,504 civil penalty, which requires it to cease unregistered FCM activities.
