The Commodity Futures Trading Commission (CFTC), has released a report that they have paid out a staggering $16 million to whistleblowers who have played a pivotal role in exposing fraudulent activities within the cryptocurrency space. This significant sum includes a jaw-dropping $15 million awarded to just two crypto tipsters, underscoring the effectiveness of their contributions to successful enforcement actions.
CFTC commissioner Christy Goldsmith Romero has emphasized that the majority of the tips received this year pertained to the crypto industry, which continues to grapple with pervasive fraud and other illegal activities. As a former Inspector General who recognizes the paramount importance of whistleblowers, Romero wholeheartedly supports the CFTC’s Whistleblower Program and its remarkable results.
Statement of @CFTCcgr in Support of the CFTC’s 2023 Annual Report on the Whistleblower Program and Customer Education Initiatives: https://t.co/imG9Lhu20x
— CFTC (@CFTC) October 31, 2023
Cumulatively, the CFTC has disbursed nearly $350 million to whistleblowers, correlating with over $3 billion in enforcement sanctions. This substantial investment in incentivizing and protecting whistleblowers has yielded significant outcomes, with 1,530 tips reported this year, marking a record high.
As the bear market deepens, more crypto companies will have to lay off employees to keep the lights on.
This creates a new risk: disgruntled former employees often become whistleblowers, especially if they have valuable intel that entitles them to an SEC or CFTC bounty reward.
— Jake Chervinsky (@jchervinsky) December 29, 2018
Whistleblowers have proven instrumental in safeguarding customers and markets by identifying fraud, interpreting crucial evidence, and expediting the cessation of illegal activities. With the rise of cryptocurrency and its associated scams, the CFTC’s Whistleblower Program, along with the Office of Customer Education and Outreach, have assumed pivotal roles in safeguarding the financial landscape.
Very proud of these offices and their outsized results. As a former IG, I know firsthand how important whistleblowers
are. The CFTC could not fully protect customers and markets w/o them. Click to read about the highest # of tips, crypto tips & environmental fraud tips. https://t.co/C4I9tgnxRU— Commissioner Christy Goldsmith Romero (@CFTCcgr) October 31, 2023
The CFTC’s announcement of an Environmental Fraud Task Force, alongside the solicitation of whistleblower tips in this domain, underscores the agency’s commitment to combating fraud on multiple fronts. The CFTC remains resolute in its dedication to protecting consumers and maintaining the integrity of financial markets, thanks in large part to the invaluable contributions of whistleblowers.
