"One" (Commissioner) About to Be the Loneliest Number at CFTC

Plus fraudsters impersonating financial regulators are scamming the elderly in the UK.

Author

Bruce Carton
August 27, 2025

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CFTC’s Johnson to Leave Next Week, Bringing Agency to One Member

Democratic Commissioner Kristin Johnson will leave the Commodity Futures Trading Commission on Sept. 3, bringing the agency under the sole leadership of Acting Chairman Caroline Pham.

In a farewell press release, Johnson called for the CFTC to receive more resources to support an expanded mission regulating digital assets, on top of its traditional market surveillance and enforcement. Lawmakers are working on legislation that would potentially hand the agency greater authority to directly regulate the crypto industry. […]

Pham, a Republican who also joined the commission in 2022, has said she will leave the agency once President Donald Trump’s pick to lead the regulator, Brian Quintenz, takes the helm.

Quintenz’s confirmation process has been stymied by last-minute delays, with votes to advance his nomination out of committee having been postponed twice. Before the latest vote delay in July, crypto billionaire Tyler Winklevoss expressed concerns about Quintenz to the White House.

by Bloomberg Law

👉 CoinDesk adds that if and when Quintenz replaces Pham, he will then “helm the commission solo, short four members, and Trump has so far shown no signs of nominating others. The president's administration has been characterized by a campaign to cut Democrats away from regulatory commissions, abandoning the tradition — and legal mandate — of having both parties involved in decisions at federal agencies. Quintenz has said he'll move forward with whatever choices Trump makes.”

Urgent scam warning issued as fraudsters pose as Financial Conduct Authority

The Financial Conduct Authority (FCA) has issued a stark warning to consumers, revealing a surge in sophisticated scams where fraudsters impersonate the financial regulator.

The watchdog disclosed it received 4,465 reports of individuals posing as FCA representatives in the first half of the year alone.

These criminals aim to defraud victims by coercing them into handing over money or sensitive personal data, including bank account PINs and passwords.

Alarmingly, approximately 480 people were successfully duped into transferring funds to these fraudsters during the same six-month period.

The majority of these reports, nearly two-thirds, originated from individuals aged 56 or above, indicating a particular vulnerability among older demographics.

by The Independent

👉 The FCA highlighted two prevalent scam tactics:

“One involves fraudsters falsely claiming the regulator has recovered funds from a cryptocurrency wallet illegally opened in the victim's name.”

“Another common method targets individuals already victimised by loan scams, promising FCA assistance in recovering their lost money.”

SEC Objects to Nikola Plan Lowering $80 Million Claim Priority

The Securities and Exchange Commission objected to Nikola Corp.’s bankruptcy liquidation plan, which aims to lower the priority of the agency’s $80 million claim to pay investors harmed by former CEO Trevor Milton’s fraud.

The civil penalty isn’t a “claim for damages” stemming from securities transactions but a regulatory enforcement action based on securities law violations, the SEC said in a Tuesday motion in the US Bankruptcy Court for the District of Delaware.

The electric vehicle maker asked the court last month to lower the claim’s priority, saying it violates the bankruptcy law’s “absolute priority rule” ….

by Bloomberg Law

👉 As discussed here back in February, the SEC was listed as the #1 unsecured creditor when Nikola filed for bankruptcy. The debt “reflects what’s left of a $125 million enforcement settlement signed in December 2021.”

SPONSORED BY

Michael Maloney, a recent recipient of Consulting Magazine’s Lifetime Achievement Award at the 2025 Top Consultants Awards, has dedicated nearly four decades to the accounting and consulting profession.

Mike is a leading authority in forensic accounting, specializing in white-collar defense, complex accounting, and fraud investigations. He served as Chief Accountant for the SEC’s Division of Enforcement and was previously President of Credibility International, overseeing high-profile global investigations.

Learn more about Mike Maloney’s background or contact him directly at https://www.fticonsulting.com/experts/michael-maloney

 

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