CFTC Report Highlights Largest-Ever Whistleblower Award

November 7, 2022

The U.S. Commodity Futures Trading Commission (CFTC)’s 2022 fiscal report highlights the largest-ever whistleblower award made under the Dodd-Frank Act.  A single whistleblower received a record-breaking $200 million award in fiscal year 2022.  According to the report, the CFTC filed 82 enforcement actions in 2022 compared to only 55 filed in 2021.  In 2022, it was successful in securing $2.5 billion in restitution and penalties. In 2021, the CFTC recovered only $1 billion.

What Does the CFTC Do?

The CFTC regulates the U.S. derivatives market. Essentially, it is tasked with protecting the public from fraud, manipulation, and abusive practices related to the sale of commodities, futures, options, fintech and cryptocurrencies such as Bitcoin.

Successful CFTC Cases in 2022

The CFTC’s Enforcement Division investigates and prosecutes violations of the Commodity Exchange Act (CEA) and CFTC regulations.  Some examples of the 82 enforcement actions in 2022 included:

• Cryptocurrency Related Actions:  Mirror Trading International Proprietary Limited, a South African foreign currency commodity pool, paid a $1.7 billion fine.  The CFTC alleged the company misappropriated Bitcoin, either directly or indirectly, from pool participants.  In addition, Mirror Trading was not a registered commodity pool operator.
• Market Manipulation:  Glencore International A.G. and Glenore Ltd. settled charges of manipulation and foreign corruption in the global oil markets.  The $1.186 billion settlement included civil penalties of $865,630,784 and disgorgement of $320,715,066.
• Recordkeeping Violations: JPMorgan paid $75 million for violation of the CFTC recordkeeping rules. JPMorgan was also in violation for permitting its employees to use non-approved electronic communication methods.

CFTC Report Highlights Largest-Ever Whistleblower Award

The CFTC report highlights a record breaking $200 million whistleblower award paid to an unidentified individual for information provided in an already open investigation.  Since its inception, the CFTC whistleblower program has issued sanctions totaling more than $3 billion.

We Help Whistleblowers File Successful Claims

Whistleblower Law Collaborative LLC, based in Boston, devotes its practice entirely to representing clients nationwide in bringing actions under the federal and state whistleblower laws and programs,  False Claims Acts, and other whistleblower programs.  We have extensive experience representing whistleblowers in False Claims Act, CFTC, and SEC matters.

Although an attorney is not required to bring a CFTC whistleblower case, the experienced attorneys at Whistleblower Law Collaborative can help you navigate the filing process and assist you with applying for any applicable reward.  One of our recent successes includes representing a client who reported financial fraud and received a $17 million whistleblower reward.

If you are considering submitting a tip, complaint, or referral to the CFTC or SEC or are aware of other types of fraud, contact us for a free, confidential consultation.