CFTC Whistleblower Program: Guide to Reporting Commodities Fraud
The Commodities Futures Trading Commission (CFTC) Whistleblower Program provides awards and protections to whistleblowers who report potential violations of the Commodity Exchange Act, which lead to a succesful enforcement action. This percentage is between 10% and 30% of the money collected. Continue reading our guid eto learn more about the program and reporting procedures.
Updated
May 14, 2025
With the major increase in commodities fraud over the last quarter century, the U.S. Congress created the CFTC Whistleblower Program with the passage of the Dodd-Frank Act. This program provides incentives, such as awards and protection, to individuals who provide original information regarding violations of the Commoditiy Exchange Act (CEA) to the CFTC.
Key features of this program include:
- Whistleblower Awards: In exchange for their original information, a whistleblower may be eligible for an award between 10% and 30% of the montary sanctions collected in a succesful enforcement action or related action brought by the CFTC, or by another agency.
- Anti-Retaliation Provisions: The program also offers anti-retaliation protections under Section 23(h), which prohibit an employer from taking retaliatory action against whistleblowers for reporting possible violations of commodities laws, or working with the CFTC in an investigation.
Since 2014 when the CFTC issued the first award, it has given out over $380 million to whistleblowers and collected over $3.2 in monetary sanctions. All whistleblower awards are paid from the CFTC’s Customer Protection Fund, which was established by Congress, and is financed entirely through monetary sanctions paid to the CFTC by violators of the CEA.
If you’re thinking of becoming a whistleblower, continue reading our comprehensive guide on the CFTC Whistleblower Program to determine if you’re eligible.
What is a CFTC Whistleblower?
The term “whistleblower” often refers to an individual or reports fraud, waste, abuse, corruption, or dangerous behavior to authorities to prevent it from continuing. This is done in order to safeguard the public from various harms, and to uphold transparency and justice.
In the context of the CFTC Whistleblower Program, a CFTC whistleblower is someone who provides the CFTC with information regarding an occuring, ongoing, or potential violation of the Commodity Exchange Act (CEA), or the rules and regulations that support it. It’s important to note that two or more individuals acting together may become whistleblowers, but a company or other such entity is not eligible.
If the individual(s) meet this criteria, and provide information to the CFTC as laid out in § 165.3, they are considered a CFTC whistleblower.
What is Original Information?
The term “original information” means any information that is found by independent analysis or knowledge, and not already know to the Commission. The information cannot be derived from public sources or from judicial or administrative hearings.
What is a Voluntary Submission?
A whistleblower’s submission is considered voluntary only if it is provided before any request or demand from relevant authorities and is not made pursuant to a pre-existing legal duty.
Types of Violations
The CFTC oversees the U.S. derivatives markets, including futures, options, and swaps. The CFTC Whistleblower Program seeks information about violations of the Commodity Exchange Act (CEA), or the rules or regulations thereunder.
The more specific, credible, and timely the complaint, the more likely the Commission will open an investigation. Below are a few examples of fraud or misconduct the CFTC is most interested in:
Fraud
- Ponzi schemes
- Affinity schemes
- Virtual currency fraud
- Insider trading
- Churning
- Fraudulent solicitation
- False customer statements
- Misappropriation of customer funds
Market Manipulation
- Spoofing
- Market manipulation
- Ficticious transactions
Trading Violations
- Unauthorized swap transactions
- Registration violations
- Disruptive trading practices
AML Violations
Accounting Violations
- Failure to produce required records
- Failure to maintain required records
Corruption
These are the most common types investigated. However, the Commission has also brought actions against fraudsters involved in the manipulation of LIBOR and other global foreign exchange rates, illegal “off-exchange” precious metal transactions, Forex trading scams, and more recently, cryptocurrency scams.
Cryptocurrency Fraud
Cryptocurrency fraud is an emerging area of enforcement for the CFTC. When a virtual currency is used in a derivatives contract or when fraud or manipulation involves a virtual currency traded in interstate commerce, the CFTC has jurisdiction over the matter.
In 2019, the CFTC Whistleblower Office posted a Whistleblower Alert telling individuals to be on the lookout for virtual currency fraud. The alert explains that individuals can qualify for whistleblower awards for reporting virtual currency fraud to the CFTC. In a July 2023 article in the WSJ, Director of CFTC’s Whistleblower Program stated that about 40% of the tip submissions at the CFTC are related to crypto.
Types of cryptocurrency fraud which the CFTC seeks information on include price manipulation (like pump and dump schemes) involving virtual currencies, pre-arranged or wash trading of virtual currencies, virtual currency futures or option contracts or swaps traded on an unregistered domestic platform or facility, and virtual currency futures or option contracts or swaps traded on an unregistered domestic platform or facility.
Reporting Internally vs. Externally
Whistleblowers may report their concerns internally first. However, this is not required to be considered for an award. It’s important to note that many internal compliance programs are put in place to protect the interest of the company, and not those of the whistleblower. Internal reporting many lead to relaliation.
If a whistleblower has reported internally to their supervisor, audit committee, chief counsel, or chief compliance officer, they have 120 days to also report it to the CFTC to maintain eligibility for an award.
It’s important to note that your participation in your company internal compliance program, such as your assistance in an internal investigation, may be used in determining award percentages if your information results in succesful sanctions.
Submitting a Tip
Hiring an Attorney
We suggest hiring a CFTC whistleblower attorney, as they can help you with the following:
- Anonymity: In order to file a tip and apply for an award anonymously, you must hire an attorney.
- Guidance: Whistleblower attorneys can ensure your tip is submitted effectively.
- Negotiation: An attorney can negotiate award percentages on your behalf, which can be tricky.
- Protection: Whistleblower attorneys can protect you agains retaliation if it occurs.
At minimum, a whistleblower should contact an attorney for a confidential consultation to understand their rights and eligiblity. Failure to follow the rules of the CFTC Whistleblower Program may result in the tip being dismissed.
Eligibility Requirements
Anyone can qualify as a whistleblower under the CFTC Whistleblower Program, as long as the succesful enforcement action results in monetary sanctions exceeding $1,000,000.
Furthermore, an individual does not need to be a company insider to blow the whistle – market observers, investors, customers, and fraud victims can all be whistleblowers.
Lastly, an individual does not have to be a U.S. citizen or U.S. resident to qualify as a CFTC whistleblower. The only requirement to become a whistleblower is voluntarily providing original information about a violation of the Commodities Exchange Act (CEA).
Those ineligible for an award include employees at regulatory agencies, convicted criminals, whistleblowers who submit duplicate information, those who acquire information illegally, those who make false statements, and employees of foreign regulatory agencies.
Form TCR
To become eligible for an award, whistleblowers must submit a tip using the online Tips, Complaints and Referrals (“TCR”) portal on the CFTC website. Physical TCR’s can be submitted as well, but the CFTC prefers that tips are submitted online.
Your tip should contain important information that leads to the CFTC opening an investigation, re-open a closed one, or pursue a new avenue regarding an ongoing investigation, including specific, credible, and timely details.
Before submitting a tip, you must be sure you first understand whether you have identified a potential violation of the Commodity Exchange Act, and that you have a full understanding of the confidentiality and protections available to you under the CFTC whistleblower program.
After Filing a TCR
The Whistleblower Office will confirm in writing that your Foirm TCR has been received, and will provide you with a confirmation number for following up. The Commission will then investigate the tip to determine if the original information provided let to a succesful enforcement action.
Award Application
Submitting a tip does automatically make a whistleblower eligible for an award and you will not receive an update regarding your complaint. You must also submit an application for an award once the Commission releases a Notice of Covered Action on their website.
What Does “Leads To” Mean?
This means the information your provided results in a succesful resolution of a covered judicial or administrative action or successful enforcement of a Related Action or both.
CFTC Whistleblower Awards
Notice of Covered Action
If your original information led to a judicdial or administrative order that led to monetary sactions exceeding $1,000,000, you may be eligible for an award between 10% and 30% of the sanctions collected.
Whistleblower must submit an award application in order to receive an award. The CFTC posts a Notice of Covered Action for every enforcement action which resulted in over $1 million in sanctions. A whistleblower has 90 days from when a Notice of Covered Action is posted to submit an award application (Form WB-APP).
Related Actions
In addition to awards for CFTC enforcement actions, the CFTC Whistleblower Program offers whistleblower awards for Related Actions carried out by other agencies. A Related Action is an enforcement action brought by another agency that is based on the same information provided to the CFTC by a whistleblower.
Related Action awards are also for 10-30% of the funds collected in the action. The CFTC does not post Notice of Covered Actions for Related Actions and it is thus up to the whistleblower to determine if there are eligible Related Actions. Working with an experienced whistleblower attorney can help with this process.
Preliminary Determinations
After applying for an award, whistleblowers receive a “Preliminary Determination” from the CFTC that tells them if they’re getting an award and how much (if any). They have 30 days to request details on why the decision was made, and 60 days to appeal the decision if they disagree. If they don’t respond within 60 days, the decision becomes final.
Final Determination
After reviewing any appeals, the CFTC issues a final decision about the award. This decision is public, and you can find it on the CFTC website. You can also sign up for email or RSS updates to be notified when new decisions are posted.
Award Factors
The CFTC evaluates a number of factors in determining the exact award percentage to grant a whistleblower. These include the timeliness of the disclosure, the degree of further assistance provided by the whistleblower, the law enforcement interest in the case, and the whistleblower’s culpability in the violations. There are positive and negative award factors that determine the percentage, which may include:
- Positive Factors: May include the significance of the information provided to the CFTC of an action or Related Action, the degree of assistance provided by the whistleblower, and the overall interest the CFTC has in deterring violations of the commodities laws.
- Negative Factors: Whether a whistleblower was involved in the fraud or misconduct, delayed reporting violations to the CFTC, or was interfered in their company’s internal compliance process.
Again it’s important to emphasize the need for a whistleblower attorney in such cases, as the process of blowing the whistle and filing for awards can be complex.
Award Orders
According to a recent press release, the CFTC has granted more than $380 in awards since the programs inception in 2014. The total monetary sanctions has exceeded $3.2 billion. Below are some of the key statistics of the CFTC Whistleblower Program:
Awards By Year (Cumulative)
Tips Received Per Fiscal Year
For a full list of final award orders, please view our comprehensive CFTC award order database.
Annual Reports on the Whistleblower Program
[Read More]Anti-Retaliation Protections
Employers are prohibited from retaliating against employees who report violations to the Commission, or who assist in an investigation. Retaliation includes actions like firing, demotion, suspension, threats or harassment. Protection applies even if the employee doesn’t qualify for an award.
Whistleblowers may receive reinstatement, backpay, and interest, or other forms of compensation for any damages sustained as a result of retaliation, which may include litigtation costs, expert witness fees, and reasonable attorney’s fees.
Action must be filed in the appropriate district court of the United States within two (2) years of the employer’s retaliatory act.
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