One whistleblower has been awarded more than $1m by the Commodity Futures Trading Commission for its “sufficiently specific and credible information” and assistance which led to an enforcement action relating to digital asset markets.
“Identifying unlawful conduct in the digital asset marketplace is a major priority for the CFTC, especially as everyday Americans are increasingly victimized by digital asset scams,” said Ian McGinley, the regulator’s Director of Enforcement.
He also added that digital asset cases accounted for almost 50% of the CFTC’s docket during the last fiscal year, and that the majority of whistleblower tips also were related to digital assets during that period.
“Whistleblowers have increasingly played a significant role in the CFTC’s enforcement actions in the digital assets space,” added Whistleblower Office Director Brian Young.
Four awards in 2024
This is the fourth award this year. The other awards, totalling $14.75m, are:
- March 14: One whistleblower was awarded about $1.25m for reporting on misconduct – the first whistleblower award to apply under the CFTC’s 120-day safe harbor provision. The whistleblower first reported the problem to their employer, but no meaningful remedial action was taken, so the issue was reported to the CFTC.
- June 3: One whistleblower was awarded $4.5m for providing detailed industry information which supported an enforcement action. The individual also provided assistance to the Division of Enforcement (DOE), which the CFTC said was significant in both the amount of information as well as the quality. The DOE staff were also helped by the whistleblower’s industry expertise.
- June 17: One insider whistleblower was awarded $8m for providing significant information and assistance that led to multiple enforcement actions, both by the CFTC and other agencies. The whistleblower helped the Commission establish that one or more derivatives market participants deceived clients about key aspects of trades. The individual also provided direct evidence of both the whistleblower’s own intent in the relevant transactions, but also knowledge and observations about clients, co-workers, and senior leadership at the liable entities.
“Based on the whistleblower’s involvement in the underlying conduct, the whistleblower provided extremely valuable insider information at a critical time during the investigations,” said Young.
| Year | Number of whistleblowers | Total amount |
|---|---|---|
| 2024 | 4 | $14.75m |
| 2023 | 4 | $33.3m |
| 2022 | 7 | $11.125m |
| 2021 | 4 | $204m |
| 2020 | 12 | $18.25m + ‘undisclosed’ further awards |
| 2019 | 7 | $16m |
| 2018 | 3 to 5* | $75.07m |
| 2017 | – | – |
| 2016 | 2 | $10.05m |
| 2015 | 1 | Approximately $290,000 |
| 2014 | 1 | Approximately $240,000 |
Since issuing its first award in 2014, the CFTC has granted whistleblower awards amounting to approximately $380m. The awards are connected with enforcement actions that have resulted in monetary sanctions totalling close to $3.2 billion.