Majority of Tip-offs Involve Crypto Scams and Fraud

CFTC Reports Rising Crypto Scams: Whistleblowers Vital in Fraud Prevention

The US Commodity and Futures Trading Commission (CFTC) has disclosed that crypto-related reports make up most anonymous tips received this year.

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

CFTC Reports an Increase in Crypto Scams

In a recent statement, the CFTC recognized the significance of whistleblowers and its continued commitment to the whistleblower program.

The statement says tipsters on illicit finance received hundreds of millions in rewards.

“Cumulatively, the CFTC has awarded almost $350 million to whistleblowers, with more than $3 billion in enforcement sanctions ordered in cases associated with those awards.”

Learn more: What Is a Rug Pull? A Guide to the Web3 Scam

Furthermore, it clarified that a total of $16 million had been disbursed this year. The majority of these funds were allocated to only two whistleblowers.

“This includes $16 million in awards this year, including more than $15 million to two whistleblowers who provided significant information and assistance that led the CFTC to bring separate successful enforcement cases.”

The statement also suggests that the increasing crypto adoption in the United States has prompted the CFTC to heighten its vigilance over individuals and entities utilizing digital assets.

“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.” 

Yearly crypto scam revenue 2017-2022. Source: Chainalysis
Yearly crypto scam revenue 2017-2022. Source: Chainalysis

Crypto Scams Targeting the Elderly

Recent reports indicate that crypto scams are increasingly targeting elderly citizens.

BeInCrypto reported on September 14 that a scammer, posing as an FTC agent, defrauded an elderly US man of his life savings.

82-year-old Houston artist Richard Hall got a call from a fraudster posing as an agency probing hackers targeting his bank.

This intensified when the fraudster convinced him to download AnyDesk before being able to get documents from Hall’s computer.

Meanwhile, the number of crypto exploits in Q2 2023 rose by 65.3% compared to the same period last year. Despite incidents rising from 49 to 81, losses dropped 60.4% from Q2 2022.

Learn more: 15 Most Common Crypto Scams To Look Out For

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content.

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