CFTC Whistleblower Office Is Seeking Tips About Carbon Markets Misconduct
- posted: Aug. 31, 2023
- Fraud
If you have information about fraud or manipulation in the carbon markets, the Commodity Futures Trading Commission (CFTC) is seeking any information available. The CFTC’s Whistleblower Office in the Division of Enforcement alerted the public to their goal, and provided information on how to identify and report potential Commodity Exchange Act (CEA) violations.
Carbon markets fraud and manipulation
Voluntary carbon markets are designed to help support a transition to a low-carbon economy. They accomplish this by purchasing carbon offsets (or carbon credits) and selling them on spot exchanges or bilaterally. Because there is the potential for fraud and manipulation, the CFTC hopes to ferret out wrongdoing with the help of whistleblowers.
At this time, the voluntary carbon credit market is worth an estimated $2 billion, and is expected to grow to $250 billion by 2050. The CFTC oversees the carbon credit market as well as carbon allowances and “other environmental commodities products that are linked to futures contracts.”
The Whistleblower’s Office is hoping to work with market participants who report potential fraud in the carbon markets. This includes but is not limited to “manipulative and wash trading, “ghost” credits, double counting, fraudulent statements relating to material terms of the carbon credits, and potential manipulation of tokenized carbon markets.” In turn, whistleblowers may be eligible for anti-retaliation and confidentiality protections. If the information leads to a successful CFTC enforcement action, the whistleblower may also be eligible to share in monetary awards.
“Information from whistleblowers advances the Commission’s enforcement mission and, in turn, further builds integrity and trust in the carbon markets,” said Chairman Rostin Behnam.
Carbon markets whistleblowers are encouraged to submit tips to the CFTC. For more information about your legal options, reach out to a qualified whistleblower attorney at Kardell Law Group today.
