CFTC Is Rewarding Whistleblowers with $16 Million This Year for Mostly Crypto Tips
Two of the CFTC’s crypto tipsters earned $15 million each and led successful enforcement cases.
In a statement released on October 31, Commodity Futures Trading Commission (CFTC) Commissioner Christy Goldsmith Romero said most of the tips received this year were crypto concerned. Christy Goldsmith Romero, commissioner of the Commodity Futures Trading Commission, said in an Oct. 31 statement that most tips received this year were related to cryptocurrencies, which she described as “an area where fraud and illegality remain pervasive” referred to.
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 regulator did not elaborate on the cases at this time. Romero explained that whistleblowers are crucial in reducing commodity fraud. Without them, the CFTC would not be able to “fully protect” markets and customers. The sooner we stop fraud, the better we can protect our customers.
Romero credited the CFTC’s Office of Customer Education and Outreach, which teaches people how to spot, avoid and report cryptocurrency scams.
Romero explained that ”with The rise of cryptocurrency has brought more retail customers under CFTC jurisdiction.”
Since the start of the Under the program, the CFTC awarded nearly $350 million in 2014. More than $3 billion was ordered in enforcement penalties in cases reported by whistleblowers.
In April, the CFTC received a record-breaking $3.4 billion fine for a Bitcoin fraud case. The CFTC also won its case in July against Digitex CEO Adam Todd, who was ordered by a court to pay a $16 million fine.
Romero stated in April that managing the risks associated with cryptocurrencies is critical to maintaining market integrity, financial stability and national security.
She has advocated for stricter identity verification measures, saying this would reduce illicit financing in the cryptocurrency market.
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
