SEC Whistleblower Program Hits Record High, Individual Whistleblower Receives $279 Million, Surpassing Total Bonuses for 2022

According to the SEC official website, a record-breaking $279 million has been set as the highest-ever whistleblower award, more than double the previous high of $114 million and surpassing the total awards for the entire year of 2022.

SEC Whistleblower Award Reaches Record High

According to an announcement from the U.S. Securities and Exchange Commission (SEC) here, the SEC awarded nearly $279 million to a whistleblower on May 5th, emphasizing that the information and assistance provided by the whistleblower enabled the SEC to successfully pursue enforcement actions.

According to the SEC's official website, the $279 million award sets a record for the highest whistleblower award amount in history, more than double the previous record, surpassing the total awards in 2022. All whistleblower awards in 2023 combined are just a fraction of what this whistleblower received:

• March 31, 2023: Two whistleblowers awarded $12 million

• January 24, 2023: Joint whistleblowers awarded $28 million

• January 19, 2023: Three whistleblowers awarded $18 million

• January 13, 2023: Whistleblower awarded $5 million

The previous record was $114 million in October 2022.

Gurbir S. Grewal, Director of the SEC's Enforcement Division, stated:

The size of the award is at an all-time high, not only incentivizing whistleblowers to provide accurate information on potential securities violations, aiding in enforcement actions, but also reflecting the tremendous success of the whistleblower program and the direct benefit to investors.

The SEC did not disclose which case the whistleblower report was related to, but the fines collected by the SEC amounted to $4 billion.

Today we announced the largest-ever award, nearly $279 million to a whistleblower whose information and assistance led to the successful enforcement of SEC and related actions.https://t.co/GGwiZ4BQUf

— U.S. Securities and Exchange Commission (@SECGov) May 5, 2023

How Much Can SEC Whistleblowers Receive in Awards?

According to the SEC Whistleblower Program, the awards paid to whistleblowers come from the Investor Protection Fund established in the reform of the Dodd-Frank Act by Congress, all funded by SEC fines, and the SEC also protects whistleblowers' identities anonymously.

When enforcement actions are successful and fines exceed $1 million, whistleblower awards range from 10% to 30% of the SEC's fine.

According to the Amended Whistleblower Rules, whistleblowers must be "individuals" who provide the SEC with any information that could potentially violate federal securities laws; companies and other entities are not eligible as whistleblowers, and the rules do not specify whether the whistleblower must be a U.S. citizen.