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CFTC pays whistleblowers $16M this year for mostly crypto tips
This year, the commodities regulator in the United States has rewarded whistleblowers a total of $16 million for providing valuable information that led to successful enforcement actions. The majority of these tips were related to cryptocurrency.
In an Oct. 31 statement According to Christy Goldsmith Romero, a Commissioner of the Commodity Futures Trading Commission, the majority of the tips received this year were related to cryptocurrency. She stated that crypto is an area that still experiences widespread fraud and other unlawful activities.
I am extremely proud of these offices and the exceptional outcomes they have achieved. As someone who previously served as an Inspector General (IG), I personally understand the significance of whistleblowers.
The CFTC relies on these tips to ensure the protection of customers and markets. To learn more about the largest number of tips, including those related to cryptocurrency and environmental fraud, click the link. https://t.co/C4I9tgnxRU
“Commissioner Christy Goldsmith Romero, also known as @cftccgr on Twitter, said the following:” October 31, 2023
In September, the CFTC awarded $15 million to two individuals who provided valuable information, resulting in successful enforcement cases. However, the regulator did not provide details about the specific nature of those cases in its report. statement at the time.
Romero stated that whistleblowers are crucial in preventing commodities fraud, emphasizing that without them, the CFTC would be incapable of ensuring complete protection for customers and markets.
“Whistleblowers play a crucial role in uncovering fraud and other unlawful activities, analyzing significant evidence, and ultimately saving valuable resources and time for the Commission. By promptly addressing fraudulent activities, we are able to provide better protection to our customers and prevent any potential harm.”
Romero recognized the work of the CFTC’s Office of Customer Education and Outreach, which provides instruction on identifying, avoiding, and reporting instances of cryptocurrency fraud.
Romero mentioned that the CFTC now has authority over a larger number of retail customers due to the increasing popularity of cryptocurrencies.
Since its inception in 2014, the CFTC has distributed nearly $350 million through the program. As a result, there have been enforcement sanctions totaling over $3 billion imposed in cases that were uncovered through whistleblowers’ tips.
The CFTC won a record $3.4-billion penalty payment in a Bitcoin ( BTC )-related fraud case in April and The case against Adam Todd, the CEO of Digitex, was won.In the month of July, an individual was directed to provide a sum of $16 million in fines.
In April, Romero emphasized that effectively handling the dangers connected to cryptocurrency would be crucial.essential for maintaining the honesty and fairness of the marketthe safety of the nation and the stability of its finances.
She has supported the idea of incorporating more robust methods of verifying identity, arguing that it would reduce the occurrence of illegal financial activities in the cryptocurrency industry.
With the bear market intensifying, an increasing number of cryptocurrency companies will need to make job cuts in order to sustain their operations.
This poses a new danger: former employees who are dissatisfied often turn into whistleblowers, particularly if they possess crucial information that makes them eligible for a reward from the SEC or CFTC.
— Jake Chervinsky (@jchervinsky) December 29, 2018
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