The Commodity Futures Trading Commission (CFTC) regulates the futures 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 and derivatives.  

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 futures commission merchants, and commodity pool operators, among other CFTC registrants.  

What kinds of commodities fraud can whistleblowers report? 

The CFTC investigates and prosecutes violations such as: 

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

• Market manipulation, including spoofing 

• Ponzi or other schemes 

• False or fraudulent statements 

• Fraud related to digital assets, with an invigorated approach on frauds against retail investors 

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, it filed enforcement actions against cryptocurrency exchanges, such as FTX and Binance, 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 awards 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 judicial action. To be eligible for an award, whistleblowers must follow the CFTC’s filing requirements, and the resulting sanctions must be greater than $1 million. 

 
If you are aware of any fraud in commodities markets, on the futures exchanges, 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.  

Why Choose Cohen Milstein 

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.