CFTC: Most Whistleblower Tips Involve Crypto, Commissioner Wants Stronger ID Verification

U.S. regulators paid $16 million to crypto whistleblowers this year as part of an effort to identify fraud and other illegal activities.

As a result, the Commodity Futures Trading Commission (CFTC) plans to increase financial literacy, particularly related to crypto scams.
“With the rise of crypto, more retail customers have come under the CFTC’s jurisdiction, making even more critical the efforts of the CFTC’s Whistleblower Program and the Office of Customer Education and Outreach,” a recent report states.

Whistleblowers assist in identifying fraud, and other illegal activities and interpreting any evidence.

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Out of the total 1,530 tips, the report adds that most of the tips received involved crypto.

The commissioner is now vouching for stronger identity verification measures in the cryptocurrency market to enhance market integrity, national security, and financial stability.

Also Read: CFTC Commissioner Says Crypto Regulation Must Evolve With Tech Or Investors Pay The Price

CFTC chair Rostin Behnam has pressed for a strong regulatory framework in the crypto industry. The agency enforcement division issued over 130 monetary awards since 2015, with 45 related to crypto fraud accounting for around 34% of the total.

CFTC Commissioner Summer Mersinger recently said that investing in cryptocurrency is no longer a fad considering bitcoin’s price rally, The Block reported.

“The more we see traditional finance stepping in and really investing, it's just further proof that these products aren't going away,” Mersinger said.    

Read Next: CFTC Warns DeFi Investors Are Playing With Fire

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