Majority of whistleblowing tips received by CFTC were about crypto
CFTC Commissioner Christy Goldsmith Romero described the crypto industry as an industry with "pervasive fraud and other illegality."
The United States Commodity Futures Trading Commission (CFTC) has revealed that most of the whistleblower tips it received this year were crypto-related.
CFTC Commissioner Christy Goldsmith Romero made this disclosure on Oct. 31 while reacting to the efforts of the financial regulator’s whistleblower program, revealing that the agency received a total of 1,530 tips and paid $16 million to whistleblowers this year.
The CFTC disclosed that out of the $16 million designated for whistleblowers, a substantial sum exceeding $15 million was granted to two individuals in September. These whistleblowers furnished crucial information that culminated in the successful enforcement actions against undisclosed entities.
It was unclear if these whistleblowers had provided information on crypto firms.
‘Pervasive fraud and illegality’
The federal agency commissioner described crypto as an industry fraught with “pervasive fraud and other illegality.”
Over the past year, the crypto industry has faced increased allegations that it is being used for illegal activities. While the crypto community has stood up against these accusations, regulators worldwide have scrutinized the industry to bring the emerging industry into compliance.
However, these actions have not been totally successful, as malicious players have continued to find loopholes to circumvent this regulatory gaze.
According to Romero, CFTC’s Office of Customer Education and Outreach has played an important role in increasing financial literacy, particularly related to crypto scams. He said:
“With the rise of crypto, more retail customers have come under the CFTC’s jurisdiction, making even more critical the efforts of the CFTC’s Whistleblower Program and the Office of Customer Education and Outreach. “