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Five Whistleblowers Receive $1.1 Million Bounty By The SEC

SEC Ripple Slapped With a $1.3 Billion Lawsuit by SEC
SEC Ripple Slapped With a $1.3 Billion Lawsuit by SEC

The Securities and Exchange Commission (SEC) has announced today that more than $1.1 million has been awarded to five whistleblowers. This award was given to said whistleblowers for notifying and otherwise aiding the regulator in successful enforcement action through the provision of high-quality information.

Good Rewards For Good Work

The SEC stated that these whistleblowers had alerted the regulator of “hard-to-detect” breaches, doing so with supporting evidence and vital knowledge. In particular, three of these whistleblowers had been given a whopping $500,000 between them.

The official statement attributed these three whistleblowers with two related enforcement actions. Two of these aforementioned whistleblowers received payment for assisting an ongoing investigation, while the third had prompted the opening of an entirely new investigation.

Another whistleblower, in particular, had been given $600,000 all for themselves. This was for tipping the regulator off and for giving it further assistance within its investigation. As the report shows, the tipster had notified the regulator repeatedly regarding internal affairs, all in a bid to remedy these violations.

Everything On The Hush-Hush

As is the policy of the SEC, these individuals aren’t really identified, but have been attributed to providing significant levels of assistance. This includes actively meeting in-person with members of investigative staff, and providing critical documents that show evidence of possible foul play.

As for the third order, another $100,000 had been given to an individual whistleblower. This was awarded thanks to the tipster providing an independent analysis based on material available to the public. This, in turn, allowed the agency to start looking at new conduct within an investigation.

Movie-Worthy Skills From One Tipster

As for this case, in particular, the tipster in question had managed to ascertain foul play through publicly available materials, promptly alerting the watchdog to re-prioritize its investigations when it comes to the violations investigated in question.

This whistleblower, in particular, had received praise from the SEC, as they had continuously provided the watchdog with various new insights regarding violations in the securities law. As such, the watchdog was capable of protecting the assets of the investors.

The whistleblower in question had helped the regulator through assistance and information to devise a new investigative plan within the early stages of a case. This allowed the watchdog to preserve resources and time.

The SEC explained that the whistleblower had managed to estimate a critical metric for the company in the investigation. This whistleblower did so through the use of public information, showing the implausibility of the company’s own posted metrics of that field. As always, details aren’t forthcoming, in tandem with SEC policy.

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