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FxWirePro: US-CFTC Announces Good News For Whistle-blowers

The United States Commodity Futures Trading Commission’s Whistle-blower program has been created under section 748 of the Dodd-Frank Wall Street reform and consumer protection act of 2010. 

As part of that program, CFTC announced it will award more than $6 million to a whistleblower who voluntarily provided original information that led the CFTC to bring a successful enforcement action. Thereby, the US regulatory authority initiated its investigation upon receiving the whistleblower’s information, which was specific, credible and timely. With this award, the CFTC has now granted over $110 million in whistleblower awards since issuing its first award in 2014.  

“This award together with the many that have preceded it — shows that in its short history, the Commission’s Whistleblower Program has significantly strengthened our enforcement program,” said CFTC Director of Enforcement James McDonald. “The contribution that whistleblowers have made cannot be overstated. To use just one data point, whistleblowers have led the CFTC to obtain nearly $900 million in monetary relief.  We are very grateful for the value that whistleblowers have added to our investigations and litigations.” 

“Sizeable awards like this one should signal to potential whistleblowers that there are real financial incentives to promptly reporting violations to the CFTC,” added Whistleblower Office Director Christopher Ehrman.

In addition to the agency’s enforcement actions, the CFTC awards those in connection with actions brought by other domestic or foreign regulators if certain conditions are met. 

The sphere of cryptocurrencies have been under the meticulous scanner of the renowned global regulators, such as, US SEC, CFTC, UK’s Financial Conduct Authority (FCA) and FINMA etc. We are glad that CFTC has taken such an initiative to appreciate whistleblowers, CFTC has, so far, been identifying risky areas of the financial industry. In the recent past, the CFTC, has charged Florida-based individual & companies for forex & digital assets scam.

The Commodity Exchange Act (CEA) provides confidentiality protections for whistleblowers. Regardless of whether the CFTC grants an award, the CFTC will not disclose any information that could reasonably be expected to reveal a whistleblower’s identity, except in limited circumstances.

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