(Bloomberg) -- Wall Street’s top derivatives regulator gave almost $200 million to a whistle-blower in the largest ever award for information that significantly contributed to an already open investigation.
The unnamed tipster’s information led the Commodity Futures Trading Commission to find direct evidence of wrongdoing, according to a Thursday statement from the CFTC. The tip also led another U.S. federal regulator and a foreign agency to bring similar allegations. The CFTC issues awards for help in its enforcement actions as well as those brought by other domestic or foreign regulators if certain conditions are met.
Neither the whistle-blower nor the firm accused of misconduct were identified by the CFTC, in keeping with the federal government’s policy of withholding information that could reveal a tipster’s identity. Since issuing its first award in 2014, the CFTC has awarded more than $300 million to whistle-blowers.
Whistle-blowers are eligible to receive between 10% and 30% of the monetary sanctions collected. The CFTC pays for the awards through a fund established by Congress, which is funded by sanctions paid to the agency. No money is taken or withheld from injured customers to fund the program.
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