CFTC Opens Bounty Program For Pump & Dump Cryptocurrency Schemes
The U.S. Commodity Futures Trading Commission (CFTC) has warned about virtual currency Pump and Dump schemes and is offering a rewards for those who ‘blow the whistle’ and provide original information. The information has been released by the CFTC on a statement released to the media some days ago.
Get Rewarded By Informing About Pump and Dumps
The cryptocurrency market has reached unprecedented levels in 2017. But as the value of virtual currencies grew, the number of pump and dump schemes and scams multiplied as well. This is one of the main reasons why the CFTC is warning about these activities, how to avoid and inform about them to the agency.
The main intention of the text is to prevent users to participate in these kind of activities. Moreover, the CFTC shows how these schemes can be very harmful for the participants.
The statement released by the CFTC reads as follows:
“The U.S. Commodity Futures Trading Commission (CFTC) is advising customers to avoid pump-and-dump schemes that can occur in thinly traded or new ‘alternative’ virtual currencies and digital coins or tokens. Customers should not purchase virtual currencies, digital coins, or tokens based on social media tips or sudden price spikes.”
But the interesting fact is that the CFTC is offering an interesting monetary award for informing about these p&d schemes. The rewards could be between 10% and 30% for those individuals who allow the agency to impose a monetary sanction of $1 million dollars or more.
“If you have original information that leads to a successful enforcement action that leads to monetary sanctions of $1 million or more, you could be eligible for a monetary award of between 10 percent and 30 percent,” says the CFTC.