Key takeaways

  • The CFTC whistleblower reward program offers monetary payouts to people who report violations of the Commodity Exchange Act.
  • Claiming CFTC whistleblower rewards is done on the outcome of a successful prosecution, with awards ranging from 10% to 30%.
  • CFTC whistleblower eligibility requires original information that leads to a sanction exceeding $1 million.
  • Steps to apply for CFTC whistleblower rewards are straightforward, with volunteers simply submitting Form TCR with the information. 

Financial activities in the commodities and derivatives markets are hard to unpack. It has become even harder in recent years as the digital asset market grows and legislators look to clamp down on illegal activity. 

That’s why the United States Commodity Futures Trading Commission (CFTC) created a program to incentivize people to come forward with information about illegal practices. 

Rewards can be sizable, even millions of dollars! So, how does it work, and how can you be rewarded as a CFTC whistleblower?

What is the CFTC whistleblower program?

The CFTC whistleblower program is a reporting system that awards monetary rewards to people who report violations of the Commodity Exchange Act. 

It was established in 2010 via the Dodd-Frank Act, which overhauled financial regulation in the US after the great recession between 2007 and 2009. The CFTC operates the program, offering whistleblowers between 10% and 30% of monetary sanctions collected over $1 million.

The CFTC $1-million whistleblower reward scheme encourages individuals to come forward with information to maintain the integrity of trading on the commodities and derivatives market. Whistleblowers are provided with confidential and anti-retaliation protection for their cooperation. 

Did you know? $30 million — that’s the amount a whistleblower was awarded in 2020 when reporting fraudulent practices, one of the most significant awards to date.

Eligibility requirements for the CFTC reward

Only some individuals or information are eligible to receive the CFTC reward. Before reporting, it’s important to start understanding CFTC whistleblower incentives and the eligibility requirements. 

The rules encourage high-quality and actionable information to improve the chances of convictions. Plus, they exclude people who might try to exploit commodity fraud reporting with CFTC for personal gain.

To be eligible for a CFTC whistleblower reward, you must:

  • Provide original information voluntarily.
  • The information must lead to a successful sanction exceeding $1 million.
  • Be a person or group, but not an entity. 
  • Not have a legal obligation to report or be convicted of a crime related to the violation.

Did you know? The number of tips the CFTC receives every year is growing substantially. In 2016, it received around 1,000 reports, but this number grew to 7,000 in 2023.

Steps to apply for the CFTC whistleblower reward

Since its inception, the CFTC has awarded more than $370 million in awards. The first award was in 2014, and enforcement actions from whistleblowers have now totaled more than $3 billion.

Here’s how to become a CFTC whistleblower:

  • Submit a TCR Form (Tip, Complaint, or Referral) of the potential Commodity Exchange Act violation. You can submit it online via the CFTC’s website.

Page 1 of the CFTC's TCR Form

  • The CFTC whistleblower office will confirm the receipt of your form with a written confirmation number.
  • If you wish to remain completely anonymous, an attorney can file the form on your behalf.
  • Don’t expect to receive updates on the complaint, as investigations are confidential.
  • If the information leads to a successful enforcement action and it results in monetary sanctions (fines, penalties, etc.), they will post a Notice of Covered Action on their Notices page. 
  • Within 90 days of the Notice of Covered Action posting, submit Form WD-APP (Application for Award for Original Information) via online, mail or fax.

Page 1 for form WB-APP

  • The CFTC’s Claims Review Staff will evaluate your application and issue a Preliminary Determination, indicating whether your award application is recommended for approval or denial. You will receive written notification of this determination. If you disagree with the Preliminary Determination, you have the right to request the record and contest the decision before the Commission issues a Final Determination. 
  • The Commission will issue a Final Order regarding your award application. If approved, you will receive a percentage (between 10% and 30%) of the monetary sanctions collected in the enforcement action.

If you’re thinking about blowing the whistle, you can start the CFTC whistleblower filing process and find out more about how the CFTC whistleblower program works on the official website.

How CFTC rewards help expose financial misconduct

CFTC whistleblower rules and rewards empower people to report a wide variety of financial crimes that undermine the integrity of markets. It plays a crucial role in exposing and preventing fraudulent activities. Here are the main types of violations under the CFTC whistleblower program:

  • Digital currency fraud: Regulators keep a beady eye on cryptocurrencies, especially when it comes to price manipulation and wash trading. Attempts to mislead retail customers with pump-and-dump schemes, pre-arranged trading or unregistered platforms can be reported and investigated. 
  • Corrupt practices: CFTC reporting and rewards apply to actions that impact commodity prices or are used to manipulate benchmarks that can be reported to the CFTC. This includes bribes, kickbacks, corrupt payments to secure business, advising, or dealing in swaps or derivatives.
  • Spoofing: Placing orders in futures markets with the plan to cancel them before execution is seen as an attempt to manipulate market appearance. In fact, spoofing is a federal crime with a maximum custodial sentence of 10 years per violation.
  • Bank Secrecy Act violations: Failures in Anti-Money Laundering (AML) checks and Suspicious Activity Report (SAR) filing can be exposed through the CFTC whistleblower reward process. This includes improper supervision, recording violations, failure to protect customers from fraud and improper customer identification procedures. 
  • Insider trading: Trading based on confidential information not available to the general public. This represents an unfair advantage over the market. This applies to both traditional and cryptocurrency markets.

Did you know? In 2024, the CFTC announced an award totaling more than $1 million for a whistleblower who provided information in a sanction connected to digital assets. “Identifying unlawful conduct in the digital asset marketplace is a major priority for the CFTC,” explained Director of Enforcement Ian McGinley. 

How whistleblower rewards are calculated by the CFTC

The payouts for the CFTC enforcement and whistleblower program are based on the monetary sanctions imposed and collected from a successful case. 

Payout awards range between 10% and 30% of the total monetary sanction. There are various factors influencing the awards. The significance of the information provided has a large bearing on this, alongside the degree of assistance provided and public interest.

Considering that CFTC whistleblower reward requirements only apply to cases over $1 million, the rewards can be substantial, going to hundreds of thousands of dollars. It ensures whistleblowers are heavily compensated for their contributions. A strong financial incentive to report violations, which the CFTC acknowledges, is critical to the enforcement of the rules.