CFTC Shatters Records: Unearthing 1,530 Tips in Fiscal Year 2023
- posted: Jan. 30, 2024
- Whistleblower Litigation
The recently released 2023 Annual Report from the Commodity Futures Trading Commission (CFTC) shows that the CFTC's Whistleblower Office recorded an unprecedented 1,530 tips during this period.
The received tips highlighted many kinds of violations, including market manipulation, insider trading, and fraud related to digital assets. Tips also shed light on a range of fraud schemes, such as pump-and-dumps and romance scams. Over 900 of the tips raised concerns about fraudulent solicitation and the misuse of crypto/digital assets.
The surge in award applications is likely attributed to the CFTC granting a record $200 million award to a single whistleblower in 2021, the largest ever under the Dodd-Frank Act.
The report also mentions a September 2023 announcement of a $15 million whistleblower award, with the CFTC highlighting the whistleblower's substantial support in interpreting key evidence, facilitating witness appearances, and conserving the CFTC's resources.
The CFTC whistleblower program is an initiative by the Commodity Futures Trading Commission (CFTC) designed to encourage individuals to come forward and report potential violations of the Commodity Exchange Act (CEA). The program provides monetary incentives and protections to whistleblowers who provide original and credible information leading to successful enforcement actions resulting in monetary sanctions exceeding $1 million. Whistleblowers may receive financial rewards ranging from 10% to 30% of the monetary sanctions collected by the CFTC. The program aims to enhance market integrity and protect investors by incentivizing individuals with valuable information to assist the CFTC in identifying and prosecuting violations of commodity laws and regulations.
Reporting CEA Violations
If you possess knowledge of potential violations of the Commodity Exchange Act, it is crucial to consider engaging the services of an experienced attorney who specializes in representing whistleblowers. An attorney can provide invaluable guidance throughout the entire process, from assessing the validity of your information to ensuring the submission of a comprehensive and compelling whistleblower complaint. Moreover, legal representation can help safeguard your rights, including protection against retaliation. The expertise of an attorney specializing in whistleblower cases significantly enhances the likelihood of a successful outcome, maximizing your potential eligibility for monetary rewards and contributing to the overall enforcement of the Commodity Exchange Act.
Contact the Kardell Law Group today to discuss your whistleblower claim.