An insider whistleblower has been awarded over $4m by the Commodity Futures Trading Commission (CFTC) after providing information that led to an investigation into ongoing misconduct.
The investigation was led by the Division of Enforcement (DOE), and the whistleblower assisted by sharing knowledge about the complex products and transactions that were involved in the misconduct. These included failures to comply with CFTC rules to protect against fraudulent, deceptive, and manipulative acts or practices.
“The violations would have been difficult to detect without the knowledge of an insider,” said Director of Enforcement Ian McGinley. “The whistleblower’s information played a key role in putting a stop to the misconduct.”
The whistleblower also cooperated with the DOE’s investigation as it continued.
“The violations would have been difficult to detect without the knowledge of an insider.”
Ian McGinley, Director of Enforcement, CFTC
“It is not always easy to come forward, particularly when it involves where you work or people you work with,” said Whistleblower Office Director Brian Young. “The CFTC appreciates whistleblowers who make that difficult choice.”
Five awards in 2024
This is the fifth award the CFTC this year, with rewarded awards of $18.75m in total. The other four awards were:
- March 14: One whistleblower was awarded about $1.25m for reporting on misconduct – the first 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.
- August 8: One whistleblower was awarded more than $1m for “sufficiently specific and credible information” and assistance which led to an enforcement action relating to digital asset markets.
| Year | Number of whistleblowers | Total amount |
|---|---|---|
| 2024 | 5 | $18.75m |
| 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 $384m. The awards are connected with enforcement actions that have resulted in monetary sanctions totalling close to $3.2 billion.