CFTC Awards Over $8 Million to Whistleblower who "helped the CFTC establish that one or more derivatives market participants deceived clients about key aspects of trades."

The Commodity Futures Trading Commission today announced it awarded over $8 million toa whistleblower who provided significant information and assistance that led the CFTC and other agencies to bring multiple enforcement actions. The whistleblower helped the CFTC establish that one or more derivatives market participants deceived clients about key aspects of trades. 

According to the CFTC, the whistleblower provided direct evidence of not only the whistleblower’s own intent in the relevant transactions, but also the whistleblower’s knowledge and observations about clients, co-workers, and senior leadership at the liable entity or entities. This ultimately saved substantial time and resources for staff and resulted in a far stronger and more triable case in the event of litigation. 

As a GameStop shareholder, the revelation that a whistleblower has exposed deceit by derivatives market participants is both infuriating and validating. It confirms long-held suspicions that manipulative practices in the derivatives market via deceit do occur. However, the infuriating part is not knowing more about how all of this all actually played out because it is [REDACTED]

"The whistleblower helped the CFTC establish that one or more derivatives market participants deceived clients about key aspects of trades." 

About the CFTC’s Whistleblower Program:

The Whistleblower Program was created under Section 748 of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. Since issuing its first award in 2014, the CFTC has granted whistleblower awards amounting to approximately $380 million. Those awards are associated with enforcement actions that have resulted in monetary sanctions totaling more than $3.2 billion. The CFTC issues awards related not only to the agency’s enforcement actions, but also in connection with actions brought by other domestic or foreign regulators if certain conditions are met.

Whistleblowers are eligible to receive between 10 and 30 percent of the monetary sanctions collected.

In this instance, it means the fine levied on the $8 million award ranged from $26.67 - $80 million.

TLDRS:

• CFTC awards over $8 million to a whistleblower.
• The whistleblower helped the CFTC establish that one or more derivatives market participants deceived clients about key aspects of trades.
• The whistleblower provided knowledge and observations about clients, co-workers, and senior leadership at the liable entity or entities.
• Whistleblowers are eligible to receive between 10 and 30 percent of the monetary sanctions collected.
  • In this instance, it means the fine levied on the $8 million award ranged from $26.67 - $80 million.
• Since 2014, the CFTC has granted whistleblower awards totaling approximately $380 million.
  • These awards are associated with enforcement actions resulting in monetary sanctions totaling more than $3.2 billion.