CFTC Awards Over $1 Million to Whistleblower in Digital Assets Case

Yesterday, August 8, 2024, the Commodity Futures Trading Commission (CFTC) announced an award of over $1 million to a whistleblower. This individual provided critical information that led to an enforcement action targeting unlawful activities in digital asset markets. The CFTC's Director of Enforcement, Ian McGinley, emphasized the growing importance of addressing misconduct in digital asset spaces, noting that "almost 50% of the CFTC’s docket last fiscal year involved digital asset...

CFTC Follows SEC Lead in Striking Down Employment Agreement For Impeding Whistleblowers

Last week (June 17), the Commodity Futures Trading Commission (CFTC) announced that Houston-based commodities merchant Trafigura Trading agreed to pay $55 million to settle charges of violating the Commodity Exchange Act. Specifically, Trafigura traded gasoline based on misappropriated confidential information and manipulated a fuel oil benchmark to benefit its futures and swaps positions.  But what has really gotten the public's attention is the CFTC also going after Trafigura for using...

CFTC Makes $8 Million Whistleblower Award

On June 17, the Commodity Futures Trading Commission (CFTC) awarded over $8 million to an insider whistleblower whose critical information and assistance led to multiple enforcement actions by the CFTC and other agencies. This significant payout underscores the vital role of whistleblowers in maintaining the integrity of the commodities markets. This follows the $4.5 million whistleblower award the agency made earlier this month in a different enforcement matter.   The...

CFTC Awards $4.5 Million to Whistleblower

Yesterday, June 3, 2024, the Commodity Futures Trading Commission (CFTC) announced a $4.5 million award to a whistleblower who provided detailed information and assistance to the Division of Enforcement (DOE). Pursuant to agency practice, the DOE did not disclose the identity of the whistleblower or the associated enforcement action. The CFTC maintains strict confidentiality over its whistleblowers. The CFTC did report that the whistleblower provided assistance that was “significant in both amount and quality”...

CFTC Makes First Whistleblower Award to Compliance Officer

On March 14, the Commodity Futures Trading Commission (CFTC) announced a $1.25 million whistleblower award.  The award is not notable for its relatively modest size.  Rather, it is notable because it was made to an individual with compliance or internal audit responsibilities, and individuals serving this function are typically precluded from qualifying as whistleblowers under the CFTC Whistleblower Program. Under CFTC Rule 21F-4(b)(4), individuals who serve in a compliance or...

CFTC Anoints New Whistleblower Chief

Yesterday (February 15), the Commodity Futures Trading Commission (CFTC) named Brian Young as the new director of the CFTC’s Whistleblower Office.  In doing so, the agency officially filled the vacancy left when former director Chris Ehrman stepped down in July. Mr. Young has big shoes to fill as under Director Ehrman's tenure, the CFTC saw tremendous growth in its Whistleblower Program, which provides sizable awards to whistleblowers who bring information leading to...

CFTC’s 2023 Annual Report on Whistleblower Program Highlights Program’s Success and Important Role of Whistleblowers

The CFTC’s 2023 Annual Report to Congress on its whistleblower program highlights the success of the program and strongly reinforces the important role whistleblowers play in rooting out commodity frauds. The CFTC’s Whistleblower Program “provides monetary incentives to individuals who report possible violations of the Commodity Exchange Act that lead to a successful enforcement action,” and provides “privacy, confidentiality, and anti-retaliation protections for whistleblowers.”  The program awards whistleblowers with up...

CFTC Makes $18 Million Whistleblower Award

Yesterday (October 12), the Commodity Futures Trading Commission (CFTC) announced an $18 million whistleblower award.  The agency did not disclose the identity of the whistleblower or the associated enforcement action.  It never does.  The CFTC maintains strict confidentiality over its whistleblowers.  All we know is the whistleblower "provided detailed information and assistance," that "was significant in amount and quality," and which was "crucial" to resolving a related action by another agency....

CFTC Awards $15 Million to Two Whistleblowers

Yesterday (September 19), the Commodity Futures Trading Commission (CFTC) announced its award of $15 million to two whistleblowers.  Keeping to its commitment of protecting the identity of its whistleblowers, we do not know who the whistleblowers are or the enforcement actions to which the rewards relate.  All we know is the whistleblowers "provided significant information and assistance that led the CFTC to bring separate successful enforcement actions." The associated Whistleblower...

Largest-Ever Whistleblower Award Nets CFTC Tipster Almost $200 Million

On October 21, the Commodity Futures Trading Commission (CFTC) announced that it paid nearly $200 million to a whistleblower, a colossal award that is certainly the largest the CFTC has ever made, but also the largest award made under any federal whistleblower-reward program to a single whistleblower, including the False Claims Act. The CFTC said the whistleblower's tip provided important, "direct evidence of wrongdoing" and led to a successful enforcement action.  It...