- CFTC allocates $16M for whistleblower awards targeting crypto fraud in 2023.
- The commissioner emphasizes the critical role of whistleblowers.
- CFTC aims to incentivize crypto-related tips.
The cryptocurrency market has garnered significant attention from regulatory bodies. One such entity is the Commodity Futures Trading Commission (CFTC), which increasingly focuses on crypto regulation.
Most recently, the CFTC revealed a significant allocation of $16 million for whistleblower awards, specifically aimed at combating cryptocurrency fraud.
CFTC’s $16 Million for Whistleblowers
On Tuesday, October 31, the CFTC released its annual report, revealing a $16 million allocation for whistleblower awards this year, specifically focusing on cryptocurrency fraud.
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Commissioner Christy Goldsmith Romero highlighted the importance of whistleblowers in identifying these illegalities. The substantial financial incentive aims to encourage more tips related to crypto fraud, thereby aiding the CFTC’s enforcement efforts.
The $16 million allocation for whistleblowers aims to encourage more individuals to come forward with information on crypto fraud. The commission stated that it recognized their risk and offered them confidential protection as part of the program.
CFTC Joins SEC’s Crypto Crackdown
The CFTC and the Securities and Exchange Commission (SEC) have grappled with jurisdictional issues, particularly regarding regulating cryptocurrencies.
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While the CFTC considers cryptocurrencies as commodities, the SEC argues that most crypto assets can be classified as securities, thereby falling under its jurisdiction. Yet, both agencies seem to agree that crypto needs more oversight.
Binance, one of the world’s largest cryptocurrency exchanges, has found itself in the crosshairs of both the CFTC and the SEC. The CFTC has accused Binance and its CEO, Changpeng Zhao, of unregistered securities and money laundering. On the other hand, the SEC filed a lawsuit against Binance in June, accusing the company of unregistered securities.
On the Flipside
- It is unclear who the two whistleblowers who received $15 between them are and which fraud case they are connected to.
- Critics argue that the CFTC’s aggressive crackdown on crypto could drive cryptocurrency businesses and innovation out of the United States.
Why This Matters
The CFTC’s allocation of $16 million for whistleblower awards showcases the agency’s focus on crypto.
Read more about CFTC’s crypto crackdown:
U.S. Crypto Crackdown: CFTC Pursues DeFi Platforms
Read more about Solana’s recent performance:
Solana Outshines Bitcoin and Ethereum with 22% Price Spike
