The United States Commodity Futures Trading Commission (CFTC) has reported that it has paid out a total of $16 million to whistleblowers this year. The majority of the tips received by the CFTC involved cryptocurrency cases.
The CFTC’s Whistleblower Program provides monetary incentives to individuals who report possible violations of the Commodity Exchange Act that lead to successful enforcement actions. Since the program’s launch in 2014, the CFTC has paid out approximately $350 million, resulting in over $3 billion in enforcement sanctions.
Record 1,530 tips this year
This year, the program received a record-breaking 1,530 tips. Two whistleblowers alone won $15 million in compensation for their information, which resulted in successful enforcement suits in September. The specific nature of these cases was not disclosed.
Christy Goldsmith Romero, CFTC Commissioner, emphasized the critical role of whistleblowers in combating commodities fraud. She stated,
“Whistleblowers play a vital role in supporting CFTC investigations related to fraud and other illegality. The CFTC could not fully protect customers and markets without whistleblowers”.
Combating fraud by giving people tools
With the rise of cryptocurrencies, more retail customers have come under the CFTC’s jurisdiction. This makes the efforts of the CFTC’s Whistleblower Program and the Office of Customer Education and Outreach even more critical. The Office of Customer Education and Outreach was created to combat fraud and to give people the tools to watch out for fraudulent activity.
The rise of cryptocurrencies has led to an increase in tips received by the CFTC’s Whistleblower Program. The program plays a crucial role in protecting customers and markets from fraud and other illegal activities. As cryptocurrencies continue to grow in popularity, the efforts of the CFTC’s Whistleblower Program and the Office of Customer Education and Outreach will become increasingly important.