CFTC highlights record number of tip-offs stemming from the crypto industry

In a statement on Tuesday, Commissioner Christy Goldsmith Romero said crypto continued to attract a steady stream of fraud and illegal activity

article-image

Craig Dingle/Shutterstock modified by Blockworks

share

The Commodity Futures Trading Commission has disbursed $16 million in whistleblower awards this year, with most tip-offs pertaining to individuals in the crypto industry.

In a statement on Tuesday, CFTC Commissioner Christy Goldsmith Romero pointed out two whistleblowers alone garnered $15 million for information leading to successful enforcement cases.

While the CFTC didn’t specify the nature of those cases, Romero emphasized the key role whistleblowers play in helping the agency mitigate fraud and illegality, particularly in digital assets.

“The majority of the tips received this year involved crypto — an area that continues to have pervasive fraud and other illegality,” Romero said.

Romero also recognized the role of the CFTC’s education and outreach office, noting its focus on improving financial literacy, particularly in relation to crypto-related scams.

Read more: CFTC commissioner, industry question legality of DeFi orders

“With the rise of crypto, more retail customers have come under the CFTC’s jurisdiction, making even more critical the efforts of the CFTC’s Whistleblower Program and the Office of Customer Education and Outreach.” 

In its annual report released this month, the regulatory body highlighted a continued surge in tips concerning digital asset fraud and romance scams, although specific figures were not disclosed.

Scams often start with a text from an unfamiliar number or through interactions on social media. Victims frequently lose substantial sums, misled into believing these individuals are romantic partners, according to the CFTC.

The regulator is intensifying efforts to curb activities it considers illegal, as it aims to establish itself as the leading industry watchdog, alongside the US Securities and Exchange Commission.

Last month, the commodities regulator charged three DeFi operators Opyn, ZeroEx, and Deridex for running unlicensed trading platforms and conducting unauthorized leveraged transactions involving digital assets.

Legal specialists and some insiders at the CFTC swiftly challenged the action against ZeroEx, noting the platform engages in spot trading; a market segment currently beyond the CFTC’s regulatory authority.


Get the news in your inbox. Explore Blockworks newsletters:

  • Blockworks Daily: The newsletter that helps thousands of investors understand crypto and the markets, by Byron Gilliam.
  • Empire: Start your morning with the top news and analysis to inform your day in crypto.
  • Forward Guidance: Reporting and analysis on the growing intersection of crypto and macroeconomics, policy and finance.
  • 0xResearch: Alpha directly in your inbox. Market highlights, data, degen trade ideas, governance updates, token performance and more.
  • Lightspeed: Built for Solana investors, developers and community members. The latest from one of crypto’s hottest networks.
  • The Drop: For crypto collectors and traders, covering apps, games, memes and more.
  • Supply Shock: Tracking Bitcoin’s rise from internet plaything worth less than a penny to global phenomenon disrupting money as we know it.
Tags

Upcoming Events

Industry City | Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Research

article-image

The platform also rolled out 13 tokenized funds for institutions on the Connect platform

article-image

The company’s expanded lineup introduces new ETF products, as more and more issuers get into crypto funds

article-image

President Donald Trump announced a 10% levy on almost all goods and additional tariffs on so-called “worst offending” countries

article-image

Solana may be in “recomposition” mode, as new protocols put usefulness ahead of mere virality

article-image

The stablecoin issuer will have to contend with bigger players and the interest rates environment

article-image

The president reportedly was still working on his tariff policy plans late Tuesday evening