The U.S. Securities and Exchange Commission (SEC) has issued its largest ever $279 million whistleblower award.
The SEC typically issues awards ranging from 10% to 30% of penalties over $1 million. In order to receive such an award, A whistleblower must provide information that directly helps the SEC to successfully impose enforcement action on a particular case.
In a May 5 statement, the SEC I got it The $279 million awarded to an unnamed whistleblower was more than double the October 2020 record of $114 million.
What’s more, the $279 million figure awarded in this latest case surpasses all whistleblower awards. issued Looking ahead to 2022, the SEC distributed $229 million in 103 awards last year.
SEC Director Gurbir Grewal said: Division of execution.
These awards are provided by the Investor Protection Fund established by Congress. This is funded by collecting financial penalties paid by the securities law violator to her SEC, and not from funds owed to injured investors.
In these circumstances, the SEC will neither mention the specific cases involving the whistleblower ruling, nor the name to protect the whistleblower’s privacy.
As such, it is unclear if this is related to a major securities breach from the crypto sector or Wall Street.
Regarding whistleblowers, the SEC noted that they helped provide important information about cases the SEC is already working on.
“The whistleblower’s continued support, including multiple interviews and written submissions, was critical to the success of these actions,” said Creola Kelly, head of the SEC’s Whistleblower’s Office.
“While the whistleblower’s information did not prompt the Commission to launch an investigation, their information did expand the scope of wrongdoing that was prosecuted,” she added.
Related: SEC given 10 days to respond to Coinbase complaint: General Counsel
The SEC’s Whistleblower Incentive Program was established under the Dodd-Frank Wall Street Reform and Consumer Protection Act signed into law by former President Barack Obama in mid-2010. The act simultaneously established a similar program for the Commodity Futures Trading Commission.
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