CFTC Pays a Staggering $16M to Whistleblowers, Mostly for Crypto Tips

• The Commodity Futures Trading Commission (CFTC) has paid $16 million to whistleblowers this year.
• The majority of the tips received this year are related to the digital asset sector, as per a statement.
• CFTC Commissioner Romero said that crypto was “an area that continues to have pervasive fraud and other illegality.”
• Since 2014, it has dished out $350 million to whistleblowers, leading to $3 billion worth of regulatory actions

The United States Commodity Futures Trading Commission (CFTC) has paid a whopping $16 million to whistleblowers this year for their crucial information that led to regulatory takedowns against illicit operations. Interestingly, most of the tips were related to the crypto sector, which resulted in successful enforcement actions by the regulator

According to a statement by CFTC Commissioner Christy Goldsmith Romero, the agency responsible for regulating commodities in the United States received a majority of tips related to digital asset operations, which she claimed was “an area that continues to have pervasive fraud and other illegality.”

“With the rise of crypto, more retail customers have come under the CFTC’s jurisdiction, making even more critical the efforts of the CFTC’s Whistleblower Program and the Office of Customer Education and Outreach,” said Romero

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.

— Commissioner Christy Goldsmith Romero (@CFTCcgr) October 31, 2023

It is important to note that, as per an earlier press release from the regulator, two whistleblowers received $15 million for their tips, which led to the agency’s multiple takedowns in September. Interestingly, the commissioner pointed out that “whistleblowers play a vital role in supporting CFTC investigations related to fraud and other illegality,” while adding:

“The CFTC could not fully protect customers and markets without whistleblowers Whistleblowers help identify fraud and other illegality, interpret key evidence, and save considerable Commission resources and time. The faster we can stop fraud, the more we can protect customers from harm.”

Additionally, Romero also acknowledged the efforts of the CFTC Office of Customer Education and Outreach, which was responsible for teaching investors how to spot, avoid, and report cryptocurrency fraud, which remains a significant trouble for investors. Interestingly, since 2014, the regulator has given $350 million to whistleblowers while leading regulatory enforcement actions worth $3 billion.

As reported earlier by Bitnation, the CFTC filed a lawsuit against Stephen Ehrlich, the former CEO of the now-defunct cryptocurrency lender Voyager Digital, for deceiving the platform’s users about the security of their holdings. Further, the agency also imposed significant fines of $250,000, $200,000, and $100,000, respectively, on decentralized finance (DeFi) protocols Opyn, ZeroEx, and Deridex. The agency also issued cease-and-desist orders against these three protocols.