CFTC Rewards Whistleblowers with $16M, Focusing Heavily on Crypto Cases

CFTC's Generous Rewards for Whistleblowers

The US Commodity Futures Trading Commission (CFTC) has disbursed a total of $16 million to whistleblowers this year, with a substantial portion of these payouts linked to cryptocurrency-related cases.

Cryptocurrency Frauds in the Spotlight 

A significant aspect of the whistleblowing tips received by the CFTC has been associated with cryptocurrency matters. The CFTC Commissioner, Christy Goldsmith Romero, emphasized the prevalence of fraud and illicit activities within the crypto market.

Million-Dollar Payouts for Crypto Whistleblowers

Notably, two whistleblowers received a substantial sum of $15 million as compensation for their contributions. Their information led to successful enforcement actions in September, although the exact nature of the cases wasn't disclosed in the CFTC's statement.

Whistleblowers as Pillars of Anti-Fraud Efforts

Romero underscored the vital role played by whistleblowers in the fight against commodities fraud. They assist in identifying fraudulent activities, interpreting evidence, and safeguarding the interests of customers. Since the program's launch in 2014, the CFTC has disbursed approximately $350 million, resulting in over $3 billion in penalties and sanctions.

This development coincides with the CFTC's recent legal action against Stephen Ehrlich, the former CEO of the now-bankrupt crypto lender Voyager Digital.