The Commodity Futures Trading Commission regulates the commodities markets. Further, the CFTC works with other government agencies to ensure the integrity of global financial markets. More specifically, the CFTC regulates digital currencies, derivative markets, commodity markets, swap markets, and other investments. In doing so, the CFTC uses anonymous CFTC bounty action rewards to identify fraud schemes and other illegal conduct.
CFTC Bounty Action Rewards Over $100 Million to Whistleblowers
Since 2014, the CFTC has awarded approximately $100 million to whistleblowers. The Commission actions associated with those awards have resulted in sanctions orders totaling more than $800 million.
Anonymous CFTC Bounty Action Rewards
CFTC Bounty Actions allow whistleblowers to report investment fraud schemes anonymously through a lawyer and collect rewards. This whistleblower protection protects whistleblower identities and careers. It also helps whistleblowers hire a lawyer to understand how to properly report illegal conduct.
Recent CFTC Action on Fraudulent Investment Scheme
The CFTC charged multiple defendants with fraudulently soliciting and misappropriating approximately $33 million in digital assets. Further, the complaint specifically alleges that from at least August 2017 through December 2019 defendants operated a fraudulent scheme. More specifically, the defendants solicited funds to purportedly trade digital assets and then misappropriated those funds. Further, the agency alleges that defendants engaged in numerous misrepresentations. These fraudulent misrepresentations include false claims regarding earnings, algorithm success, and abilities to transfer or withdraw customer funds.
Further, in reality the defendants sent only a small portion of the customers’ funds to digital asset trading accounts, did not earn the trading profits they claimed, and misappropriated funds. To conceal the fraud, the defendants provided customers with false accounting statements, newsletters containing false trading returns, and fictitious screenshots reflecting the amount of money under the defendant’s management.
Related Wire Fraud and Misappropriation
The CFTC also works with the SEC and DOJ. As such, the CFTC and SEC identified additional illegal conduct at these companies. This conduct violates wire fraud and securities law. As such, the DOJ, SEC, and CFTC are working on prosecuting the crimes. Illegal conduct such as the above investment fraud can be the basis of bounty actions.