In his recently published article in Bloomberg Law, Daren Firestone says that with the crypto industry’s likely move to decentralized finance markets in the wake of SEC crackdowns, whistleblowers will be crucial to protect investors and ward off money laundering.
Here’s an excerpt from Firestone’s article, calling on the need for whistleblowers:
“Whistleblowers are needed to support regulators by identifying the people who run DeFi projects that defraud users or facilitate money laundering, tax evasion, and sanctions evasion. Fortunately, the federal government has strong programs to pay qualifying whistleblowers between 10% and 30% of monetary sanctions.
With the massive sanctions already imposed in crypto enforcement cases—some in the eight or nine figures—there is significant upside to the often-difficult decision to blow the whistle.
As the cryptosphere turns toward DeFi, whistleblowers will be needed to ensure the industry is safe for investors and not for criminals.”
For the latest news, updates, and legal insights on whistleblowing in the cryptocurrency sector, you can learn more here.