Crypto prime broker FalconX has reportedly acquired a majority stake in Monarq Asset Management’s parent company, previously owned by bankrupt exchange FTX.
According to a June 2 report from Bloomberg, the move seeks to expand the firm’s institutional client base and broaden its asset management services.
Monarq Asset Management, formerly known as MNNC Group, is a Cayman Islands-registered fund. Prior to operating as MNNC, the hedge fund was known as LedgerPrime and was part of the FTX empire before the exchange’s collapse. Terms of the deal between FalconX and Monarq’s parent company were not disclosed.
Founded in 2018, FalconX has moved to expand its footprint in recent months. In January, the prime broker acquired derivatives startup Arbelos Markets. In May, the company announced a partnership with Standard Chartered to scale institutional crypto banking.
FalconX reportedly views its stake in Monarq as a way to expand its institutional client base beyond hedge funds, firms, and asset managers. Benefits may include scaling quantitative models and growing the firm’s team.
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FalconX and the CFTC
FalconX says it is the world’s largest digital asset prime brokerage, executing over $1.5 trillion worth of trading volume with access to 94% of global digital asset liquidity. In May 2024, it settled with the US Commodity Futures Trading Commission (CFTC) for $1.8 million in penalties and disgorgement for allegedly failing to register with the agency.
As part of the settlement, FalconX agreed to stop offering services to US residents.
In June 2022, the broker raised $150 million at an $8 billion valuation as part of its Series D financing round. Later that year, it would survive the FTX collapse. According to the broker, the exchange held 18% of its unencumbered cash equivalents.
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