The Commodity Futures Trading Commission (CFTC) regulates the derivatives markets, which initially focused on futures contracts in agricultural commodities, metals, and fuels. Today, the CFTC focuses on markets which include futures, swaps related to stocks, foreign currencies, and digital or virtual currencies.  

The CFTC regulates exchanges that host futures trading; swap execution facilities, which are platforms that allow participants to buy and sell swaps; swap data repositories, which are centralized facilities for swap data reporting and recordkeeping, and the Options Clearing Corporation. 

What Kinds of Commodities Frauds can Whistleblowers Report? 

The CFTC investigates and prosecutes violations such as: 

• Abuse of commodity derivatives and swaps that threaten market integrity and public confidence 

• Market manipulation, including spoofing 

• Ponzi or other schemes 

• Fraudulent schemes in connection with commodities, futures, and swaps 

• False or fraudulent statements 

The CFTC also oversees the compliance of entities it regulates with the anti-money laundering requirements.  

A Focus on Digital Assets 

The CFTC is one of the leading enforcement agencies in the cryptocurrency and digital asset space. Recently, the CFTC filed enforcement actions against high-profile cryptocurrency exchanges which were misappropriating and illegally offering digital asset derivatives to U.S. customers and willfully evading commodities laws.  

Whistleblower Awards 

The CFTC Whistleblower Program provides monetary rewards to eligible whistleblowers who voluntarily provide original information about regulatory violations within the CFTC’s jurisdiction.   

Eligible whistleblowers are entitled to between 10% and 30% of the amount collected in monetary sanctions through successful administrative or judicial action.  To be eligible for a reward, whistleblowers must follow the CFTC’s filing requirements, and the resulting sanction must be greater than $1 million. 

 If you are aware of any fraud in commodities markets or violations of commodities laws and would like to discuss your options under the CFTC whistleblower program, please contact us for a complimentary, confidential review of your case.  

A Key Differentiator 

We are unique in that our attorneys have been involved in the CFTC Whistleblower Program since its inception. In fact, Christina McGlosson served as Acting Director for the CFTC’s Whistleblower Office and regularly reviews and comments on legislation affecting the CFTC’s Whistleblower Program.