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 cases.”.
The awarded whistleblower supplied the CFTC with very specific and credible information about improper trading that was previously unknown to the agency. This kind of contribution was a major reason for the successful enforcement action by the CFTC.
About the CFTC’s Whistleblower Program
The CFTC’s Whistleblower Program, established under the Dodd-Frank Act of 2010, offers awards ranging from 10% to 30% of the monetary sanctions collected from enforcement actions. Since its inception, the program has granted approximately $380 million in awards, tied to sanctions nearing $3.2 billion.
The program protects whistleblowers’ identities, maintaining confidentiality to encourage more individuals to come forward with information about potential violations. Awards are funded through the CFTC’s Customer Protection Fund, which is exclusively financed by sanctions paid by violators. With the increasing prevalence of scams affecting everyday digital investors, the agency appears to remain vigilant and supportive of these cases.
If you might possess information regarding potential violations in the commodities or digital assets markets, the CFTC wants to hear from you. If you want to learn more about whistleblower reward laws, contact us to connect with an experienced member of our whistleblower team for a confidential consultation. Your information could be vital in protecting investors and ensuring market integrity.
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