CFTC Cracks Down on Fraud and Manipulation in FY 2023

The CFTC and other agencies have taken steps to improve the functioning and transparency of the Treasury market, such as issuing a joint report on the March 2020 market turmoil.
CFTC Cracks Down on Fraud and Manipulation in FY 2023

The Commodity Futures Trading Commission (CFTC) announced its enforcement results for Fiscal Year 2023, which ended on September 30, 2023.

The CFTC filed 96 enforcement actions charging fraud, manipulation, and other significant violations in diverse markets, including digital assets and swaps markets, resulting in over $4.3 billion in penalties, restitution and disgorgement.

The CFTC brought a record number of digital asset cases, addressing frauds by major exchanges, individual Ponzi-schemers, and others. It also obtained a first-of-its-kind litigation victory against a decentralized autonomous organization and a digital asset futures platform.

The CFTC continued to hold registrants to their regulatory obligations, such as supervision, risk management, and reporting. It also brought actions against manipulation and spoofing in various markets, such as precious metals, energy, and interest rates.

CFTC Achievements in 2023

The CFTC achieved precedent-setting court decisions in complex litigations, such as obtaining a permanent injunction against a foreign bank for spoofing and winning a jury trial against a former trader for spoofing and commodities fraud.

“The CFTC’s enforcement program has been vigorous, innovative, and effective in protecting the American public and ensuring market integrity,” said CFTC Chairman Rostin Behnam in a statement. “We have pursued wrongdoers across the globe, across asset classes, and across the regulatory spectrum.”

The CFTC’s enforcement results reflect its efforts to enhance the resilience of the U.S. Treasury market, which is the largest and most liquid government securities market in the world. 

The CFTC and other agencies have taken steps to improve the functioning and transparency of the Treasury market, such as issuing a joint report on the March 2020 market turmoil and proposing new rules on central clearing and reporting.

The CFTC’s enforcement results also show its commitment to addressing the risks posed by climate change to the derivatives markets and underlying commodities markets.

The CFTC has requested information from the public on how climate-related financial risk is related to its statutory mandate and how it can best support the transition to a low-carbon economy.

Also Read: CFTC Awards $16M to Whistleblowers for Crypto Tips in 2023

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