The Commodity Futures Trading Commission (CFTC) has announced that crypto whistleblowers should come forward following FTX Group's implosion.
In fact, Kristin Johnson of CFTC shared that tipsters previously have received millions of dollars for their help. Johnson said that informants would receive anonymity, adding that such tips play a crucial role in enforcement given the opaqueness of some of the crypto world.
Under CFTC's rules, whistleblowers can receive 10-30 percent of the money CFTC collects in penalties from a case. Recently, CFTC awarded nearly $200 million to a single unidentified whistleblower in the 2022 fiscal year, the most significant amount granted under the Dodd-Frank Act by the CFTC or the Securities and Exchange Commission.
United States regulators are currently investigating whether FTX.com mishandled customer funds. Additionally, regulators are looking into the firm's relationships with other parts of Sam Bankman-Fried's crypto empire. Advisors overseeing FTX are struggling to locate billions of dollars in missing assets as they investigate allegations against the company's former leadership, non-existent oversight, and the misuse of client funds. According to Johnson, having vocal whistleblowers in the digital space is critical to prevent this from happening again.
Financial Advisor Transitions consults whistleblowers nationwide to explore options and to preserve and protect their interests.
