The CFTC’s whistleblower program offers between 10 and 30 percent of the monetary sanctions collected.
The U.S. Commodity Futures Trading Commission (CFTC) has awarded $1 million to a whistleblower who provided critical information about trading violations in a firm within the crypto industry.
The whistleblower, whose identity remains confidential under CFTC policies, provided the agency with crucial information that led to a successful enforcement action. The regulator highlighted that the whistleblower’s insights were instrumental in uncovering illegal activities that may have otherwise gone unnoticed.
“Whistleblowers have increasingly played a significant role in the CFTC’s enforcement actions in the digital assets space,” the CFTC’s Whistleblower Office Director, Brian Young, said.
Over $350M Awarded to Whistleblowers
The $1 million award comes from the agency’s Customer Protection Fund. The program offers eligible whistleblowers between 10 and 30 percent of the monetary fine collected. Since the first award in 2014, the CFTC has granted approximately $380 million in awards to whistleblowers.
The CFTC’s whistleblower program continues to be a critical tool in its regulatory arsenal, enabling the agency to pursue and penalize those who seek to exploit the crypto market.
The agency awards its enforcement actions and cases pursued by other domestic or international regulators, provided specific conditions are satisfied.
In this case, about six individuals initially came forward with information, but only one qualified for the award. Three of the remaining five withdrew their claims, while the other two did not supply sufficient relevant information to support the case.
CFTC Kicks Against Crypto Frauds
Ian McGinley, the CFTC’s Director of Enforcement, pointed out the significance of identifying illicit activities in the crypto sector. He noted that nearly 50% of cases the CFTC treated last year were mainly involved in crypto assets, showing the increasing pace of fraud in the industry. He also mentioned that the rate of fraud mainly affects everyday Americans.
“During the last fiscal year, digital asset cases accounted for almost 50% of the CFTC’s docket, and the majority of whistleblower tips that year were related to digital assets,” the CFTC Director said.
