Crypto/digital asset schemes drove a record number of whistleblower tips to the Commodity Futures Trading Commission during the past year.
The CFTC Whistleblower Program, established under the Dodd-Frank Act, awarded $16 million to seven whistleblowers for their help during the year that ended Sept. 30. More than $15 million went to two whistleblowers who provided significant information and help for separate, successful enforcement cases.
In its annual Whistleblower Program report, released last month, the CFTC — which oversees the U.S. derivatives market, including futures and option contracts — said it had received a record 1,530 tips this year.
“The majority of the tips received this year involved crypto — an area that continues to have pervasive fraud and other illegality,” Commissioner Christy Goldsmith Romero said in a statement about the report.
Already in the new report year, the CFTC has announced a more than $18 million award, bringing total whistleblower awards since the program’s 2010 inception to about $365 million. Sanctions in all the whistleblower-related enforcement actions have topped $3 billion.
“The CFTC could not fully protect customers and markets without whistleblowers,” Romero said. “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.”
Like many whistleblower programs, the CFTC’s program offers both incentives and protections. Whistleblowers could receive between 10 percent and 30 percent of the monetary sanctions collected when they voluntarily provide meaningful information for a successful action. Also, the CFTC does not disclose information likely to reveal a whistleblower’s identity, except in limited circumstances.
While U.S. whistleblower law can be a complex patchwork relating to various specific situations, the government — and the public — highly value whistleblower tips. Such tips help protect many from fraud and other harmful activity. If you see or suspect wrongdoing at your workplace, the experienced whistleblower lawyers at Keller Grover can advise you about your case and prudent next steps. Contact Keller Grover for a free and confidential consultation.