- November 1, 2023
- Posted by: admin
- Category: BitCoin, Blockchain, Cryptocurrency, Investments
The CFTC has paid a staggering amount of money to crypto whistleblowers for providing sensitive information that led to the successful launch of several enforcement actions.
CFTC Whistleblowers Cash In
This year, the Commodity Futures Trading Commission (CFTC) received an influx of tips from informants on illegal dealings in cryptocurrency and environmental fraud.
According to the annual report on the Whistleblower Program, the CFTC has released $16 million in rewards to whistleblowers this year. The agency granted over $15 million to two informants alone who had been actively involved in major enforcement cases, providing crucial information and assistance to the agency.
Collectively, the CFTC has awarded close to $350 million to whistleblowers and has ordered $3 billion worth of enforcement sanctions in cases related to the awards.
In an X (formerly Twitter) post released on October 31, Official Account Commissioner at the CFTC, Christy Goldsmith Romeo stated her optimism on the progress the agency has continuously achieved in executing enforcement actions due to the information provided by whistleblowers this year.
Romeo said that she was well aware of the importance of informants in the agency’s investigation processes. She commemorated the bravery and actions of the informers, stating that whistleblowers were crucial to safeguarding customers.
“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,” Romeo stated.
She added, “As a former Inspector General who knows firsthand how important whistleblowers are, I wholeheartedly support whistleblowers and the CFTC’s Whistleblower Program, and am very proud of the Program’s outsized results.”
Total market cap at $1.24 trillion | Source: Crypto Total Market Cap on Tradingview.com
CFTC’s Latest Reports On Crypto Scams
The CFTC Commissioner has disclosed that a significant portion of the information provided by whistleblowers this year has revolved around cryptocurrency illegalities.
Romeo commented on the increase in crypto scams, stating that the rapid growth of the crypto industry has attracted reprobate crypto fraudsters and encouraged illegal activities in the digital asset space.
“The majority of the tips received this year involved crypto—an area that continues to have pervasive fraud and other illegality,” Romeo stated.
Over the years the cryptocurrency industry has experienced many forms of fraud and scams including Ponzi schemes, phishing attacks, rug pulls, and more, and the CFTC has been active in its pursuit of illegal operations in the crypto industry.
One of its most recent investigations was focused on Binance, one of the world’s largest crypto exchanges. The CFTC filed a lawsuit against Binance, accusing the exchange of offering illegal commodities trading products to residents in the United States. Responding to the lawsuit, Binance filed a motion to dismiss the complaint.
The regulator’s commissioner stated that many retail customers are under the jurisdiction of the CFTC, and as such, more severe efforts have been taken by the CFTC Whistleblower Program to protect customers during this period of elevated cryptocurrency scam activities.
Additionally, Romeo commended the CFTC’s Office of Customer Education and Outreach on its efforts towards enlightening customers on crypto scams. She welcomed CFTC’s newly announced initiative, the Environmental Fraud Task Force, and stated that she was looking forward to favorable results from whistleblowers in these areas.
