The CFTC has paid $16 million to whistleblowers this year, with a significant focus on crypto-related information leading to successful enforcement actions. Learn more about the impact of whistleblowers in combating fraud and illegality in the crypto space.
The Commodity Futures Trading Commission (CFTC) has recognized the invaluable contributions of whistleblowers in the fight against commodities fraud, particularly in the crypto sector. In 2023, the CFTC disbursed a total of $16 million to whistleblowers, with the majority of the tips related to the cryptocurrency domain, an area fraught with pervasive fraud and illicit activities, according to CFTC commissioner Christy Goldsmith Romero.
Two whistleblowers alone were awarded a substantial $15 million for their pivotal information, which led to successful enforcement cases. While the specific cases weren’t detailed in the statement, it underscores the critical role whistleblowers play in safeguarding customers and the integrity of financial markets. Romero emphasized the importance of whistleblowers in identifying fraud, interpreting key evidence, and saving significant Commission resources.
The rise of cryptocurrency has expanded the CFTC’s jurisdiction over retail customers, making whistleblower information even more crucial. Since the inception of its whistleblower program in 2014, the CFTC has rewarded individuals with nearly $350 million, resulting in over $3 billion in enforcement sanctions. Notably, this year, the CFTC secured a record $3.4 billion penalty payment in a Bitcoin-related fraud case.