CFTC Clamps Down on Illicit Activities in Crypto Space
In 2023, the Commodity Futures Trading Commission (CFTC) made a strong move to regulate the crypto space by filing a record-setting 96 enforcement actions across diverse markets, resulting in penalties and restitution exceeding $4.3 billion.
The CFTC’s commitment to the integrity of US derivatives markets was evident in its groundbreaking work in the digital asset space. Chairman Rostin Behnam emphasized the Commission’s laser focus on stopping and deterring fraud and manipulation in the US.
Majority of Anonymous Tips Related to Crypto-Related Fraud
The CFTC’s efforts were particularly pronounced in the crypto arena, with the majority of anonymous tips received in 2023 related to crypto-related fraud. This data underscores the pervasive illegality plaguing this emerging market.
In FY 2023, it brought 47 actions related to digital asset commodities, representing over 49% of all actions filed during that period.
Whistleblowers Earn Millions of Dollars
The CFTC’s whistleblower program played a crucial role in fighting against crypto-related fraud. The program awarded almost $350 million to whistleblowers, with over $3 billion in enforcement sanctions in associated cases. This year alone, the CFTC disbursed $16 million in awards.
Hot Take: CFTC’s Strong Stance Against Crypto-Related Fraud
The CFTC’s aggressive stance on crypto-related fraud in 2023 sends a clear message to market participants. The Commission will not tolerate illicit activities that undermine the integrity of the US derivatives markets.
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