On November 12, the U.S. Commodity Futures Trading Commission (CFTC) awarded $4 million to two whistleblowers whose disclosures led to a successful enforcement action. One of the whistleblowers was awarded a larger sum than the other due in part to the timeliness of their disclosure.

According to the CFTC, “the violations resolved in the covered action related to the integrity of the markets the CFTC oversees and of the investigations it conducts.” The agency further notes that “each whistleblower provided specific, credible, and timely assistance to the CFTC that led to the charges being successfully resolved.”

The first whistleblower’s disclosure caused the CFTC to open the investigation which culminated in the successful enforcement action. While the second reported that the violative practices had continued. However, the CFTC determined that the second whistleblower had unreasonably delayed in reporting and thus lowered their award.

“Timely reports to the CFTC are critical for enforcement,” said Director of Enforcement Ian McGinley. “They help prevent further harm to customers or market participants and hold wrongdoers accountable to the fullest extent possible.”

Under the CFTC Whistleblower Program, qualified whistleblowers, individuals who voluntarily disclose original information that leads to a successful enforcement action, are eligible to receive monetary awards of 10-30% of the funds collected in the action. The CFTC also provides strong anonymity and confidentiality protections to whistleblowers.

Since it was established in 2010, the CFTC Whistleblower Program has been an immense success. Whistleblower disclosures have contributed to enforcement actions resulting in over $3.2 billion in monetary sanctions and the program has awarded approximately $390 million to whistleblowers.

The success of the program has created a funding crisis however, as a cap on the program’s fund is not adequate for the size of awards being issued by the program. Immediate Congressional action is needed to save the program from financial collapse.