- The CFTC has issued $16 million in payouts to crypto whistleblowers this year, with the majority of tips originating from the cryptocurrency sector.
- Commissioner Christy Romero unveiled this data while presenting the CFTC’s 2023 Annual Report on the Whistleblower Program
- In 2023, over 1,500 tips were reported to the agency, the highest number ever
The Commodity Futures Trading Commission (CFTC) has paid crypto whistleblowers $16 million in payouts this year, with the majority of tips coming from those in the cryptocurrency sector. The startling figure was presented by Commissioner Christy Romero in support of the CFTC’s 2023 Annual Report on the Whistleblower Program and Customer Education Initiatives, in which she revealed that over 1,500 tips alone have come into the agency in 2023. Romero noted that the sector “continues to have pervasive fraud and other illegality” rampant within it, suggesting that those figures will get worse before they get better.
$3 Billion Paid Out in Total
In a statement published yesterday, Romero, a former Inspector General, expressed wholehearted support for whistleblowers and the CFTC’s Whistleblower Program, which she said has paid out a total of $3 billion throughout its existence. Her statement highlighted that the CFTC’s Whistleblower Program acknowledges the risks whistleblowers take by providing both confidentiality and financial incentives, adding that the agency recognizes the crucial role whistleblowers play in its investigations related to fraud and other illegal activities.
Whistleblowers have contributed significantly to identifying fraud, Romero said, interpreting essential evidence and saving Commission resources and time. This approach has resulted in a notable increase in whistleblower tips this year, with 1,530 tips received to date, the highest ever recorded.
Crypto Sector Sees Most Tips
Of concern to crypto advocates is that the majority of tips received this year pertained to the crypto sector, with Romero expressing her concern over the “pervasive fraud and other illegal activities” that continue to plague it.
She added that only through education can the number of victims be reduced, noting the CFTC’s efforts to increase financial literacy, particularly concerning crypto scams, through the Office of Customer Education and Outreach.
