Phillips & Associates

CFTC Bounty Program

Whistleblower Lawyers Serving New York City and Surrounding Areas

The United States Commodity Futures Trading Commission (CFTC) encourages reporting of pump and dump schemes. Pump and dump schemes are now associated with virtual currencies and digital tokens, but historically they involved boiler room frauds involving penny stocks coupled with false promises that companies were about to experience a major breakthrough. Once prices got to a specific point, boiler rooms dumped the remaining shares, resulting in a crash in which investors' stock became worthless. Today, this fraud occurs in connection with virtual currencies and digital coins that are hyped on social media. If you are interested in providing original information in connection with the CFTC bounty program, you should consult the New York City whistleblower lawyers at Phillips & Associates.

The CFTC Bounty Program

The CFTC has warned consumers to steer clear of pump and dump schemes involving new alternative virtual currencies, digital coins, or tokens. There is a temptation to make these purchases based on sudden price spikes or social media hype. However, it is crucial for consumers to research the companies behind virtual currencies to determine what is accurate. One of the primary reasons why pump and dump schemes continue to exist is because they are usually anonymous.

Many pump and dump groups and chat rooms include members who subscribe to the group and follow conversations that show when another pump and dump will happen. The organizer may hype up the need to purchase on a particular date, creating a phony urgency by asking those members to share information on social media. Often, false news reports are posted in connection with small and lesser-known virtual currencies. This cycle can be accomplished in just minutes. The people who created the pump and dump get out right away, while others lose their investments.

Pump and dumps happen in the mostly unregulated market for digital tokens and virtual currencies. These scams have grown enormously, and there may be many potential victims or perpetrators. Customers who lose money in this type of scheme may complain to the CFTC. The CFTC keeps anti-fraud and manipulation enforcement authority over virtual currency cash markets.

If you have original information that goes on to be the basis of a successful enforcement action that results in monetary sanctions of $1 million or more, you could be eligible for a monetary award of between 10 percent and 30 percent. People who want to submit tips can do so on the CFTC whistleblower website and would be well served to do so with the assistance of an experienced lawyer. In addition to monetary incentives, there are also protections regarding retaliation, confidentiality, and privacy.

If the CFTC obtains a final judgment or settlement for more than $1 million in monetary sanctions, a Notice of Covered Action will be posted to notify anyone who provided a tip that there is an order eligible for an award payout. Once this is posted, whistleblowers who provided original information and submitted a Form TCR have 90 days to apply for a reward.

Protections Against Retaliation

The CFTC can bring an enforcement action against your employer if it retaliates against you for whistleblowing. Retaliation may include termination, demotion, threats, harassment, or a suspension that happened because you gave information to the Commission after reporting information through internal compliance, legal, or whistleblower procedures. Employers are not allowed to take steps to stop you from speaking or emailing directly with CFTC staff about a violation of the Commodity Exchange Act. Employers cannot threaten to enforce a confidentiality agreement with regard to those communications in order to silence you or punish you for whistleblowing. You may be able to recover damages if this happens to you.

Hire a Skillful Employment Attorney in New York City

If you are consideringfiling a claim under the CFTC bounty program as an employee in a New York City workplace, you should consult an experienced employment attorney. You can contact Phillips & Associates at (212) 248-7431 or through our online form for a free consultation. Our lawyers handle employment litigation in the boroughs of the Bronx, Queens, Brooklyn, and Manhattan; the counties of Westchester, Nassau, and Suffolk; as well as New Jersey, Connecticut, and Pennsylvania.

45 Broadway, #620,
New York NY, 10006
Tel: 212-248-7431
Fax: 212-901-2107

Client Reviews
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