CFTC Paid $1 Million Whistleblower Award as Digital Asset Cases Dominate Docket

The Commodity Futures Trading Commission (CFTC) announced on Aug. 8 that it had paid a $1 million whistleblower award for information leading to an enforcement action in digital asset markets.

The Commodity Futures Trading Commission (CFTC) has paid out a $1 million whistleblower award for information that led to an enforcement action in the digital asset markets, the regulator announced on Tuesday.

The whistleblower provided the CFTC with previously undisclosed details about improper trading activity, according to the announcement. The CFTC did not disclose the whistleblower’s identity, the specific enforcement action, or the exact award amount, in keeping with the Commodity Exchange Act (CEA).

“During the last fiscal year, digital asset cases accounted for almost 50% of the CFTC's docket, and the majority of whistleblower tips that year were related to digital assets,” said CFTC Enforcement Director Ian McGinley, regarding the prevalence of digital asset scams and whistleblower tips.

According to CFTC Whistleblower Office Director Brian Young, the agency is increasingly relying on whistleblower tips for digital asset enforcement actions. In the case of the $1 million award, Young said the whistleblower provided “sufficiently specific and credible information” to support the CFTC's case.

The CFTC stated that whistleblowers may be eligible for 10% to 30% of monetary sanctions collected, with the funds coming entirely from the agency's Customer Protection Fund. The CFTC also noted that it can issue awards related to enforcement actions by other domestic or foreign regulators under certain conditions.

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