In a
decisive stride to enforce market laws and regulations, the Commodity Futures
Trading Commission (CFTC) has issued a comprehensive report detailing its
enforcement activities for Fiscal Year 2023 (FY23).
The report highlights
a landmark year for the Commission, particularly in regulating the burgeoning
digital asset market. The CFTC’s aggressive stance on misconduct has resulted
in many cases and significant financial penalties. Half of all cases concerned crypto, showing that the CFTC is tightening the cryptocurrency screw.
The year
2023 was marked by an impressive enforcement display from the CFTC , as it
launched 96 actions against a range of malpractices, including fraud, market
manipulation, and regulatory non-compliance.
A notable
aspect of these actions was the vigorous pursuit of digital asset-related
misconduct, with cases making up almost half of the year’s total enforcement
actions. Penalties, restitution, and disgorgement exceeded $4.3 billion,
signaling the CFTC’s heightened scrutiny and zero-tolerance policy towards
market abuse.
CFTC
Chairman Rostin Behnam emphasized the Commission’s “laser-focus” on
eradicating fraud and manipulation to protect the derivatives market’s
integrity.
“At a
time of great uncertainty and volatility, healthy U.S. commodity markets are
paramount to ensuring a strong economy. The CFTC will continue to take all
necessary action to protect customer funds and ensure fair prices for U.S.
consumers. I thank the Division staff for their hard work over the last fiscal
year,” Behnam added.
@CFTC released its FY 2023 record-setting #enforcement results. Learn more: https://t.co/J8iBX4kWtG
— CFTC (@CFTC) November 7, 2023
Biggest CFTC’s Cases
during Last Year
The CFTC’s
report highlighted several high-profile cases in the wide foray of tradable
assets. Among these was the crypto action against Sam Bankman-Fried (SBF) and
associated entities for an alleged multi-billion dollar fraudulent scheme. The
year also saw charges against a digital asset lending platform Binance
for operating an unregistered commodity pool.
In addition
to digital asset enforcement, the CFTC tackled manipulative practices like
spoofing, with settlements and penalties against major financial institutions,
including HSBC and Goldman Sachs.
The CFTC’s
commitment extended to ensuring compliance with risk management and reporting
obligations, evidenced by a series of actions against entities for
recordkeeping and supervisory failures.
“The
Division of Enforcement’s FY 2023 results demonstrate the CFTC’s relentless
commitment to accountability, deterrence, customer protection, and ensuring
market integrity,” said the Director of Enforcement at CFTC, Ian McGinley.
Also, at
the heart of the CFTC’s mandate is customer protection. The FY 2023 report
recounts significant wins in this arena, with millions ordered in restitution
to victims of various schemes.
Whistleblower Impact and
Specialized Task Forces
The
Whistleblower Program has been instrumental in the CFTC’s enforcement
successes, with awards granted to individuals whose information led to
successful actions. This program underscores the value of insider information
in policing the markets.
“In FY
2023, the CFTC granted seven applications for whistleblower awards, totaling
approximately $16 million, for individuals who voluntarily provided original
information that led to successful enforcement actions,” the regulator said.
Since the
inception of the Whistleblower Program through FY 2023, the CFTC has issued 41
orders granting awards totaling almost $350 million. The total sanctions
ordered in all whistleblower-related enforcement actions has surpassed the $3
billion milestone.
FY 2023
also saw the establishment of specialized DOE task forces to address
sophisticated areas like cybersecurity, emerging technologies, and
environmental fraud. These task forces leverage specialized knowledge and
experience to confront complex market challenges.
In a
decisive stride to enforce market laws and regulations, the Commodity Futures
Trading Commission (CFTC) has issued a comprehensive report detailing its
enforcement activities for Fiscal Year 2023 (FY23).
The report highlights
a landmark year for the Commission, particularly in regulating the burgeoning
digital asset market. The CFTC’s aggressive stance on misconduct has resulted
in many cases and significant financial penalties. Half of all cases concerned crypto, showing that the CFTC is tightening the cryptocurrency screw.
The year
2023 was marked by an impressive enforcement display from the CFTC , as it
launched 96 actions against a range of malpractices, including fraud, market
manipulation, and regulatory non-compliance.
A notable
aspect of these actions was the vigorous pursuit of digital asset-related
misconduct, with cases making up almost half of the year’s total enforcement
actions. Penalties, restitution, and disgorgement exceeded $4.3 billion,
signaling the CFTC’s heightened scrutiny and zero-tolerance policy towards
market abuse.
CFTC
Chairman Rostin Behnam emphasized the Commission’s “laser-focus” on
eradicating fraud and manipulation to protect the derivatives market’s
integrity.
“At a
time of great uncertainty and volatility, healthy U.S. commodity markets are
paramount to ensuring a strong economy. The CFTC will continue to take all
necessary action to protect customer funds and ensure fair prices for U.S.
consumers. I thank the Division staff for their hard work over the last fiscal
year,” Behnam added.
@CFTC released its FY 2023 record-setting #enforcement results. Learn more: https://t.co/J8iBX4kWtG
— CFTC (@CFTC) November 7, 2023
Biggest CFTC’s Cases
during Last Year
The CFTC’s
report highlighted several high-profile cases in the wide foray of tradable
assets. Among these was the crypto action against Sam Bankman-Fried (SBF) and
associated entities for an alleged multi-billion dollar fraudulent scheme. The
year also saw charges against a digital asset lending platform Binance
for operating an unregistered commodity pool.
In addition
to digital asset enforcement, the CFTC tackled manipulative practices like
spoofing, with settlements and penalties against major financial institutions,
including HSBC and Goldman Sachs.
The CFTC’s
commitment extended to ensuring compliance with risk management and reporting
obligations, evidenced by a series of actions against entities for
recordkeeping and supervisory failures.
“The
Division of Enforcement’s FY 2023 results demonstrate the CFTC’s relentless
commitment to accountability, deterrence, customer protection, and ensuring
market integrity,” said the Director of Enforcement at CFTC, Ian McGinley.
Also, at
the heart of the CFTC’s mandate is customer protection. The FY 2023 report
recounts significant wins in this arena, with millions ordered in restitution
to victims of various schemes.
Whistleblower Impact and
Specialized Task Forces
The
Whistleblower Program has been instrumental in the CFTC’s enforcement
successes, with awards granted to individuals whose information led to
successful actions. This program underscores the value of insider information
in policing the markets.
“In FY
2023, the CFTC granted seven applications for whistleblower awards, totaling
approximately $16 million, for individuals who voluntarily provided original
information that led to successful enforcement actions,” the regulator said.
Since the
inception of the Whistleblower Program through FY 2023, the CFTC has issued 41
orders granting awards totaling almost $350 million. The total sanctions
ordered in all whistleblower-related enforcement actions has surpassed the $3
billion milestone.
FY 2023
also saw the establishment of specialized DOE task forces to address
sophisticated areas like cybersecurity, emerging technologies, and
environmental fraud. These task forces leverage specialized knowledge and
experience to confront complex market challenges.
