In its effort to supervise the digital asset (crypto) market, the U.S. Commodity Futures Trading Commission (CFTC) has announced a significant milestone by awarding over $1 million to a whistleblower whose information proved pivotal in an enforcement action. This award underscores the growing importance of whistleblowers in uncovering illicit activities within the rapidly expanding digital asset space.
Director of Enforcement, Ian McGinley, emphasized the CFTC’s commitment to rooting out unlawful conduct in these markets, especially as they become more intertwined with the financial lives of everyday Americans. He noted that digital asset cases accounted for nearly half of the CFTC’s enforcement docket in the last fiscal year, with a substantial portion of whistleblower tips related to this sector.
The CFTC’s Whistleblower Program
The CFTC’s Whistleblower Program, established under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, has been instrumental in the agency’s enforcement strategy. Since its inception, the program has awarded approximately $380 million to whistleblowers, with these tips leading to enforcement actions resulting in nearly $3.2 billion in monetary sanctions.
Whistleblowers can receive between 10% and 30% of the monetary sanctions collected in cases they contribute to, with all awards paid from the CFTC’s Customer Protection Fund. Notably, this fund is financed entirely by sanctions imposed on violators, ensuring that no money is taken from harmed customers.
