FalconX Nears Acquisition of Crypto Startup Arbelos

FalconX, reportedly in advanced negotiations for the acquisition of Arbelos Markets, is building on its earlier investment in the startup. A crypto derivatives startup founded in 2023 by industry veterans Joshua Lim and Shiliang Tang. The deal, expected to combine cash and stock, could be officially announced in the coming days. However, the specific financial terms, including Arbelos’ valuation, remain undisclosed. 

Earlier this year, FalconX participated in Arbelos’ $28 million seed funding round, signaling its initial interest in the emerging startup. The round was led by Dragonfly, with additional participation from Circle Ventures, Deribit, Paxos, and StarkWare.

Despite this early investment, the valuation of Arbelos at the time of the funding round and in the anticipated acquisition remains confidential. In 2022, investors Tiger Global, GIC, and B Capital valued FalconX at $8 billion after it raised $150 million in a funding round. 

FalconX Nears Acquisition of Crypto Startup Arbelos

Since its inception in 2018, the firm has raised $430 million and operates in several global markets, including the US, the UK, Malta, India, Singapore, and Hong Kong. In a notable expansion earlier this year, FalconX launched a foreign exchange desk in London. The desk provides access to 20 fiat currency pairs and caters primarily to crypto trading firms, exchanges, and brokers. 

The potential acquisition of Arbelos comes when the cryptocurrency market is seeing a surge in demand, particularly among institutional players. Raghu Yarlagadda, CEO and co-founder of FalconX, recently indicated that the company is actively considering acquisitions as part of its growth strategy. With rising business costs and tighter regulations in the crypto sector, Yarlagadda forecasted a wave of consolidation in 2025, suggesting that FalconX is positioning itself for continued expansion through strategic acquisitions.

In a separate development, the Commodity Futures Trading Commission fined FalconX $1.8 million after it found one of its subsidiaries operating in the US without proper registration, marking a significant regulatory step in its operations.

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