Whistleblowers earn $16M for crypto related tips from US CFTC
The CFTC agency confirmed that it paid nearly $16 million to people who provided inside information related to illicit crypto activities.
The Commodities Futures Trading Commission (CFTC) is the second top financial regulatory body in the US. This regulatory body is responsible for overseeing the derivatives markets by encouraging their competitiveness and efficiency, ensuring their integrity, protecting market participants against manipulation, abusive trading practices, and fraud, and ensuring the financial integrity of the clearing process. CFTC also regulates those crypto-related financial activities that fall under Commodity offerings.
On 31 Oct 2023, The CFTC agency published an official report on the tips that the CFTC body received from different people.
The report noted that it remains better for the CFTC agency to investigate fraud & illegal activities with the help of whistleblowers.
In the last 12 months, the CFTC body released a net of $350 million to the whistleblowers, in which only two Whistleblowers received a net of $16 million for providing critical information related to fraud activities.
This year, CFTC received a total of 1,530 tips, which is the highest over any year in history. The majority of the tips were related to crypto-linked fraud activities.
CFTC, SEC, & controversy
In the US, the Securities and Exchange Commission (SEC) is a top financial regulatory body and this agency shows strong regulatory dominance over the crypto sector.
The SEC agency has been a crypto hater regulatory body, on the other hand, the CFTC body failed to show regulatory dominance because the majority of the Cryptocurrency’s nature matches with Securities nature, not Commodity.
Notably many times CFTC & SEC officials passed contradictory statements over the nature of a particular cryptocurrency.
In early of this year some reports noted that both regulatory bodies were trying to establish a new set of rules to handle the crypto sector under a collaborative approach but so far no official information has come to public from either of these two bodies.
Read also: SafeMoon (SFM) CEO & CTO arrested for Safemoon crypto fraud
