The U.S. Commodity Futures Trading Commission (CTFC) are offering a sizeable bounty for informers who help identify pump and dump schemers. As per their official document, the independent government agency will compensate those who provide “original information that leads to a successful enforcement action that leads to monetary sanctions of $1 million or more.”

Successful whistleblowers will be pleasantly reimbursed, as the CTFC will grant a “monetary award of between 10 percent and 30 percent” of the seized amount. This means that the commission will part ways with at least $100,000 for valuable nuggets of information.

That reward could easily climb towards one million, however, should the identified pump and dump operation be of high significance, and/or if the CTFC determine that the whistleblower is deserved of a cut that is closer to 30 percent, rather than 10 percent.

Over the past twelve months, society has been introduced to concepts like blockchain technology, ICOs, and cryptocurrency; with public discourse tending to focus on how regular people have become crypto-millionaires overnight. You don’t need a history major to know that whenever the profit-seeking masses flood to something new, so too do rent-seeking opportunists who intend to exploit the hysteria itself.

Now consider the fact that cryptocurrency is incredibly difficult for people to conceptually grasp, and you can see why the movement has piqued the interest of pump and dump schemers. Add to this the fact that the pool of gullible victims is as big as ever – thanks to technological innovation and the borderless nature of cryptocurrencies – and it is not hard to understand why the CTFC is so concerned.

Whilst the release from the CTFC exclusively concerns pump and dump schemes, the fact is that it is but one of numerous techniques used by these exploitative thieves. This is why the HYIP Ponzi scheme that was BitConnect – which relied heavily on social media and YouTube – was able to grow to such magnitudes before imploding.

It also explains why when you click on a Tweet from an influential figure in the cryptocurrency community, you are all but guaranteed to see comments from imposter profiles, baiting the get-rich-quick hopefuls with ‘opportunities’.

Just today, the official Twitter account of Hacken (HKN) revealed that a fake Vitalik Buterin profile “managed to get more than $21k in just a few days” by having gullible victims send Ethereum (ETH) to their address under the (false) assumption that they would be sent 10x that amount in return.

Of concern is the fact that even without social media, cryptocurrency scams have proven just as effective, as recently evidenced by the Optioment pyramid scheme; where it is believed that operators took off with at least 12,000 BTC from over 10,000 victims.

Whilst far from the only type of scam currently tarnishing the reputation of the cryptocurrency movement, it is promising to see the CTFC taking action on pump and dump schemes.

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