CFTC Whistleblower Alert: Be on the Lookout for Virtual Currency Fraud
The Whistleblower Office of the Commodity Futures Trading Commission (CFTC) is issuing this alert to inform members of the public about how they may make themselves eligible for both financial awards and certain protections while helping stop fraud and manipulation relating to virtual currencies.
What is a virtual currency?
The Internal Revenue Service defines a virtual currency, such as Bitcoin, as a digital representation of value that functions as a medium of exchange, a unit of account, and/or a store of value. Virtual currencies are commodities under the Commodity Exchange Act (CEA). When a virtual currency is used in a derivatives contract, or if there is fraud or manipulation involving a virtual currency traded in interstate commerce, CFTC enforcement of the CEA comes into play.
About the CFTC
We are the U.S. regulator charged with ensuring the integrity of the futures & swaps markets.
About the Whistleblower Program
We will pay monetary awards to persons who voluntarily provide us with original information on a Form TCR about violations of the CEA or its rules, if that information leads to a successful CFTC enforcement action resulting in more than $1 million in monetary sanctions. The program also affords confidentiality and anti-retaliation protections.
For more information go to: www.whistleblower.gov
Commodity Futures Trading Commission
1155 21st Street, NW
Washington, DC 20581
This article was prepared by the Commodity Futures Trading Commission’s Whistleblower Office. The article is provided for general informational purposes only and does not provide legal or investment advice to any individual or entity. Please consult with your own legal adviser before taking any action based on this information. Please note that the above list of relevant types of misconduct is not an exhaustive list, and the IRS definition is not a statement of the Commission’s view and is instead offered as an aid to enhance public understanding of virtual currencies. See IRS Notice 2014-21, available at https://www.irs.gov/businesses/small-businesses-self-employed/virtual-currencies.