The Commodity Futures Trading Commission (CFTC) Whistleblower Program offers whistleblower awards to individuals who voluntarily provide original information about commodities fraud that leads to a successful enforcement action.

Qualified whistleblowers can receive between 10 and 30 percent of the monetary sanctions collected in the enforcement action connected with their disclosure. The Commodities Exchange Act (CEA) sets this range to provide a substantial incentive for individuals to come forward with information about commodities fraud. The CEA provides confidentiality protections for whistleblowers regardless of whether they are granted an award.

Since 2014, the CFTC has granted approximately $380 million in whistleblower awards. In the 2023 Fiscal Year, the CFTC issued seven whistleblower awards totaling roughly $16 million.

In the first half of 2024, the CFTC granted five whistleblower awards totaling around $13.75 million.

Here are the three largest CFTC awards issued in the first half of 2024:

$8 Million

On June 18, the CFTC announced its largest whistleblower award of the year to date. The CFTC awarded over $8 million to a whistleblower, allowing the CFTC and other agencies to bring multiple enforcement actions. The whistleblower played a crucial role to these actions, providing key information that helped the CFTC determine whether one or more derivatives market participants deceived clients about critical aspects of trades.

“This is an important whistleblower whose information led multiple regulators to bring multiple enforcement actions,” said Director of Enforcement Ian McGinley. “The whistleblower’s assistance enabled the CFTC and other agencies to more efficiently investigate and prosecute the misconduct.”

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,” the agency further states.

$4.5 Million

On June 3, the CFTC announced its second-largest whistleblower award so far this year. The CFTC awarded over $4.5 million to a whistleblower who gave extensive information supporting an enforcement action. This award was given after a thorough review of the information provided and its impact on the enforcement action, demonstrating the CFTC;s commitment to rewarding valuable contributions to regulatory enforcement.

“This award appropriately rewards a whistleblower who gave valuable information during multiple contacts with DOE staff,” said Director of Enforcement Ian McGinley. “The CFTC especially appreciates the critical role whistleblowers play in our enforcement actions. We recognize it is not always easy to come forward and provide support.”

According to the CFTC, “the whistleblower provided assistance to the Division of Enforcement (DOE) that was significant in both amount and quality. DOE staff greatly relied on the whistleblower’s industry expertise.”

“Anyone who provides actionable information – including victims, witnesses, and insiders – may qualify to receive a cash award under the CFTC’s Whistleblower Program,” Director of the Whistleblower Office Brian Young states.

$1.25 Million

On March 14, the CFTC announced its third-largest award of the year to date. The CFTC awarded around $1.25 million to a whistleblower whose duties included compliance or internal audit responsibilities. The whistleblower reported misconduct to the CFTC after originally notifying the employer of the whistleblower and waiting 120 days.

“The whistleblower first reported internally, fulfilling job duties and putting the entity on notice of its wrongdoing,” said Director of the Whistleblower Office Brian Young. “The CFTC’s Whistleblower Program rewards employees with compliance and audit responsibilities who first raise violations internally and then contact the CFTC if the employer sits on its hands.”

According to the CFTC, “this award is the first to apply the CFTC’s 120-day safe harbor provision to a whistleblower who served in an entity’s internal compliance or audit function.”

“Insiders have some of the most valuable evidence about illegal activity in our markets,” said Ian McGinley, Director of the Division of Enforcement. “Today’s award recognizes the risks they take in coming forward to the CFTC, as well as the role of their information in amplifying the CFTC’s enforcement efforts.”

Brooke Burkhart and Avery Hudson also contributed to this article.