The CFTC’s Whistleblower Program Receives Majority of Tips Related to Crypto
The Commodity Futures Trading Commission (CFTC) has revealed that the majority of tips received through its Whistleblower Program in 2023 were related to cryptocurrency. CFTC Commissioner Christy Goldsmith Romero stated that the agency received a record-breaking 1,530 tips this year.
The Whistleblower Program incentivizes individuals to provide information about violations of the Commodity Exchange Act (CEA) that lead to successful enforcement actions with monetary sanctions exceeding $1 million. Whistleblowers receive between 10% and 30% of the monetary sanctions paid by violators. So far, the CFTC has awarded nearly $350 million in rewards for over $3 billion in enforcement sanctions.
Romero highlighted that the tips predominantly reported violations related to digital assets, stating that crypto continues to be plagued by fraud and other illegal activities.
CFTC’s Actions Against Crypto Firms
The statement from the CFTC comes as the regulatory body pursues several crypto firms. In March, it filed a complaint against Binance, accusing the world’s largest crypto exchange of failing to register properly with the US commodities watchdog. The CFTC has also taken enforcement actions against decentralized finance (DeFi) protocols ZeroEx, Opyn, and Deridex for offering illegal derivatives trading.
Hot Take: Crypto Remains a Hotbed for Fraud and Illegality
The revelation that the majority of tips received through the CFTC’s Whistleblower Program are related to cryptocurrency highlights ongoing issues within the industry. Despite efforts by regulators to crack down on fraudulent activities, crypto continues to be plagued by scams and illegal practices. This underscores the need for increased regulation and oversight to protect investors and ensure the integrity of the market. As the crypto industry evolves, it is crucial for regulators to stay vigilant and take swift action against those who violate the rules.
By
By
By
By
By