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- 1 SEC issues highest award of $279 million to a whistleblower
- 2 SEC’s whistleblower program a big success says Gurbir Grewal, director of the SEC’s division of enforcement
- 3 Whistleblower information helped to directly enforce action on the already ongoing case
An award of $279 million was awarded by the United States, Securities and Exchange commission which is the highest ever till date. Usually, the SEC issues 10% – 30% of sanctions which exceed $1 million. Receiving such an award demands the whistleblower to provide information in such a manner so that the SEC can directly impose actions on the entity or person in the particular case.
SEC’s Whistleblower program
The previous record was $114 million in October 2022 which was broken after SEC released a statement where they announced $279 million to the unnamed whistleblower. The award of $279 million is more than the combined whistleblowers‘ award of the entire 2022 which was only $229 million including 103 awards.
Gurbir Grewal, director of the SEC’s division of enforcement said that the size of the award that they issued today is not only history-making but also fuels whistleblowers’ interest to come forward with accurate information regarding the security law violations taking place. He further said that this refers to the huge success of the program.
The U.S. Congress established an investor protection fund from where the award is being given. The funds are collected in this organization via the sanctions paid to the SEC by the securities law violators and no awards are given from the money owed to the investors.
Whistleblower privacy
To protect privacy the SEC doesn’t reveal the name of the whistleblower or any specifics related to the case. Although the SEC informed that the whistleblower provided direct information which helped them to act. Due to privacy concerns, it is still unclear whether the violation happened in the crypto sector or from Wall Street. It is still unclear that As such, it is unclear if this relates to a major securities violation from the crypto sector or Wall Street.
Creola Kelly, the chief of the SEC’s office of the whistleblower explained how the success of the actions enforced largely depended on sustained assistance, multiple interviews and written submission.
She further added that although the investigation wasn’t opened because of the information provided but the information expanded the scope of the misconduct charged
Under the Doff-Frank Wall Street Reform and Consumer Protection Act, the SEC’s whistleblower program was established and it was brought into action by then president Barack Obama in mid-2010. The same law came into action for the Commodities Future Trading Commission as well.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
