The (CFTC) recently announced that it has granted an award of around $9 million to a whistleblower, one of the five largest awards granted as part of the regulator’s Whistleblower Program.
The US watchdog said in a statement on Monday that it granted the award after the whistleblower gave it a specific, credible and timely tip. This led to the Commission opening an investigation and ultimately bringing a successful enforcement action.
The specific details regarding the whistleblower’s tip and which company or person/s it related to has been redacted from available court documents. The regulator also does not provide any information which individuals or entities are related in its statement.
Source: LinkedIn
SEC and CFTC grant big awards to Whistleblowers
Although being a whistleblower is not without its risks, it can be lucrative. As , in June the (SEC) awarded a tipster $50 million after the information provided resulted in “a successful enforcement action” and returned “a significant amount of money” to harmed investors.
At the time, the reward was the largest ever awarded by the SEC and easily surpassed the previous record of $39 million which was set back in 2018. In , the CFTC awarded $30 million to a whistleblower which, at the time, was the largest ever amount granted to a single whistleblower since its program began.
“Whistleblowers like the individual receiving the award today provide a valuable public service,” added Whistleblower Office Director Christopher Ehrman in the statement. “We encourage others to come forward with information regarding possible violations in the markets the CFTC oversees.”
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