CFTC’s Chicago Unit Gutted Amid $17 billion Enforcement Drop, Sparking Crypto Scam Fears

* CFTC's key Chicago enforcement office left with no lawyers after staff exodus. * Ex-officials warn of rising fraud risk in crypto and prediction markets. On February 11, 2026, the Commodity Futures Trading Commission (CFTC) lost its last enforcement lawyer from the Chicago office, officially disbanding a team that once housed approximately 20 personnel. The Chicago office was historically hailed as the agency’s flagship enforcement division and played a critical role in uncovering and prosecuting major cryptocurrency fraud cases. Its closure amid significant workforce reductions across the CFTC has raised alarm over an enforcement vacuum in rapidly expanding sectors like cryptocurrency and prediction markets. The staffing collapse coincides with a dramatic decline in enforcement actions. In fiscal year 2025, the CFTC brought just 13 cases and secured less than $10 million in monetary relief, a drastic drop from fiscal year 2024, when the agency achieved 58 cases and a record $17.1 billion. This has prompted warnings from a former agency lawyer, who suggested the absence of "cops on the beat" could directly invite crypto scams. As a result, critics have characterized the Chicago office’s closure as an oversight failure and expressed deep concern over its potential ramifications for emerging financial markets. The crisis reflects a broader pivot in agency priorities, as the CFTC has taken a more “pro-innovation” approach and moved away from its earlier “regulation by enforcement” strategy. While some welcome this shift as a way to foster economic growth, skeptics warn it creates dangerous gaps in oversight that bad actors can exploit. Both cryptocurrency and prediction markets are experiencing explosive growth, making the need for strong enforcement more pressing than ever. Consequently, former CFTC officials worry that the lack of personnel will inhibit the agency’s ability to prevent fraud and insider trading in these increasingly complex markets. The symbolic impact of disbanding the Chicago office has also drawn criticism. Because Chicago is synonymous with the futures markets and has long been a cornerstone of the U.S. financial system, the closure of its once-prestigious unit raises questions about the federal government’s commitment to safeguarding market integrity. Some former employees perceive the reduced staffing levels as deliberate, as these reductions have left the Chicago office operating solely with support personnel and fueled speculation that other enforcement units nationwide may face similar fates.