CFTC Risks Running Out of Money to Pay Whistleblowers Their Cut

The US derivatives market watchdog had a record $17.1 billion year cracking down on alleged fraudsters and market manipulators but could now become a victim of its own success as it looks to reward those who helped.

Banner penalties tied to enforcement actions against Binance and FTX and could result in big-time payouts to those who tipped off the Commodity Futures Trading Commission’s whistleblower program. But any payments get delivered only if the fund doesn’t run out.

“I don’t think people anticipated penalties would be this big,” said Christopher Ehrman, former director of the agency’s whistleblower office who ...