With a New $36 Million Bounty, SEC’s Whistleblower Compensation Tops $1.1 Billion

abdelaziz Fathi

The Securities and Exchange Commission on Friday said the total amount of payouts under its whistleblower program had topped $1.1 billion after the agency awarded $36 million to a tipster for flagging wrongdoing.

CFTC awards whistleblower 10 million

That marks yet another milestone for the top US cop’s whistleblower program, which was created by the 2010 Dodd-Frank Act and that was only implemented in 2011.

The SEC, which began paying disbursements to whistleblowers in 2012, said the last bounty was granted to one person for blowing the whistle in an unknown wrongdoing. The tipster’s information and assistance led to successful enforcement actions by the SEC and another federal agency.

Under the SEC’s program, whistleblowers can also be paid for information that prompts sanctions by other regulators, as long as they were eligible for an award in the underlying SEC action.

While it didn’t name the case involving the company that the award was connected to, the SEC said the whistleblower provided crucial information on an illegal scheme that was shared with another agency’s staff. The regulators’ interaction with him included multiple meetings and the identification of key documents and witnesses.

“Today’s whistleblower brought valuable new information to the attention of the SEC and to another federal agency, greatly assisting ongoing investigations. Whistleblowers can act as a springboard for an investigation or, like here, they can propel forward an already existing investigation,” said Emily Pasquinelli, Acting Chief of the SEC’s Office of the Whistleblower.

The US regulators consider several factors in determining the size of whistleblower awards. As long as their internal disclosure prompted a company investigation, they can benefit from all the information discovered in that investigation. However, whistleblowers should also report to the SEC within 120 days of the internal disclosure. Then, the commission uses the date of the internal report in determining whether they provided original information.

Last week, the SEC paid $110 million to a tipster whose independent analysis provided the agency with important insights into the extent of a company’s misconduct. The award stands as the second-largest one in the agency program’s history.

 

Read this next

Industry News

Robinhood posts strong numbers amid growth in funded accounts

Robinhood, one of the largest trading platforms in the US, has announced the results of the third quarter which shows some robust growth even though the company did not push ahead with any major plans related to crypto.

Inside View

MetaTrader 4 – What Is It?

MetaTrader 4 is the most widely used Forex platform among brokers. What are the platform’s primary features?

Digital Assets

BlockBank launches DeFi application with Robo Advisor

BlockBank, a large mobile banking platform, has announced the launch of its DeFi application which will combine decentralized finance with AI-powered technology to help traders and investors make better trading decisions in the crypto market.

Digital Assets

eToro announces crypto staking and underlying assets for Australians

Australian users opening cryptoasset positions on eToro can now purchase the underlying asset. Soon eToro will enable coin transfers from the eToro platform to the eToro Wallet.

Digital Assets

EQONEX announces international sales team to show off digital asset offering

“It is time to show the world the quality of the EQONEX group offering, and I am excited to welcome such a high caliber group of salespeople to the organization”.

Retail FX

Webull donates 8,000 Brooklyn Nets tickets to New Yorkers

“The entire Webull team is thrilled that our first-ever sports partnership is with the Brooklyn Nets, who are only five subway stops from our headquarters in New York.”

Digital Assets

AEX integrates with fiat and crypto custodians Banxa and Xanpool

Spot trading, flexible savings, DeFi mining, are several ways AEX Global allows users to participate in the wider crypto space.

Technology

Barchart launches Microsoft Excell add-in

“Whether looking to perform their own analysis, add other data sources, build macros or anything else leveraging the powerful features of Excel, we now provide that ability.”

Retail FX

Inceptial expands Belarussian FX broker into China and Japan

“We are fully aware of the needs, customs, aspirations and limitations of the different markets of Asia, after careful research. We look forward to sharing our success with our new Asian partners on this journey.”

<