The United States Commodity Futures Trading Commission (CFTC) has paid $16 million in rewards to whistleblowers this year, with the majority of tips involving cryptocurrency-related fraud and other illegal activities. Most of the tips received in 2023 involved crypto, an area that has been described as being rife with pervasive fraud and other illegality by CFTC Commissioner Christy Goldsmith Romero.
The CFTC has relied on whistleblowers to help mitigate commodities fraud, as they play a crucial role in identifying fraud, interpreting key evidence, and saving the commission resources and time. Whistleblowers have been vital to the CFTC’s ability to fully protect customers and markets.
Two whistleblowers received $15 million alone for their information that led to successful enforcement cases in September, although the nature of these cases was not disclosed.
The CFTC has paid out almost $350 million to whistleblowers since the program started in 2014, leading to over $3 billion in enforcement sanctions. The CFTC has also had several significant wins in crypto-related fraud cases, including a record $3.4-billion penalty payment in a Bitcoin-related fraud case in April and a $16 million penalty against Digitex CEO Adam Todd in July.
Romero has advocated for stronger identity verification measures to minimize illicit finance in the cryptocurrency market and emphasized the importance of managing risks associated with cryptocurrency to uphold market integrity, national security, and financial stability.
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