Smell Something Fishy? The CFTC Will Pay You to Report Crypto Scams
Colin Harper's original article for bitcoinmagazine.com reduced by 45%
"The Whistleblower Office of the Commodity Futures Trading Commission 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 [sic] fraud and manipulation relating to virtual currencies," a handout from the booth reads. The CFTC has long classified bitcoin as a commodity, and the document states that the CFTC considers all "Virtual currencies [as] commodities under the Commodity Exchange Act.". In cooperation with the U.S.
Securities and Exchange Commission, the CFTC has cracked down on illegal bitcoin brokers and dealers, as well as fraudulent crypto consultants and token rackets like My Big Coin. In the whistleblowing briefing document, the CFTC uses My Big Coin and CabbageTech as textbook examples of scammy behavior. Among red flags it encourages potential whistleblowers to look out for are pump-and-dump schemes, wash/insider trading, unregistered derivatives platforms and "Supervision failures or fraudulent conduct by virtual currency exchanges." A CFTC represented declined an interview, telling Bitcoin Magazine that each employee must be cleared by the agency to go on record.
Bitcoin Magazine did learn that this was the CFTC's first year at Consensus and that the agency has been making its rounds through the crypto conference circuit over the past year.
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CN [too long; didn’t read]
Summarised crypto news.