Both the SEC and the CFTC made fewer whistleblowers awards in 2024 than in 2023 and previous years. For the SEC, the awards dropped significantly, from nine awards totalling a record high $501m, split between 25 whistleblowers in 2023, to five awards of around $208m made to nine individuals in 2024.
The CFTC did, however, made awards to more whistleblowers last year than in the previous year. However, the total award sum for the 14 whistleblowers came to around $27.25m, about $6m less than in 2023.
$98m SEC award
The biggest award of the year was from the SEC in August. Two whistleblowers were awarded more than $98m for information and assistance that led to an enforcement action by the SEC, and an action brought by another agency. The award was split $84m and $16m. The authority said that the tip from the first whistleblower made the SEC open investigations, and that the individual later provided critical additional information and ongoing assistance in the investigations.
“Whistleblower information and cooperation play an integral role in the SEC’s enforcement efforts,” said Creola Kelly, Chief of the SEC’s Office of the Whistleblower. “Without these whistleblowers’ information, the violations would have been difficult to detect.”
| Date | SEC award | Enforcement action count |
|---|---|---|
| October 10 | $12m split between three joint whistleblowers | 1 SEC |
| August 26 | More than $24m to two whistleblowers | 1 SEC and an action brought by another agency |
| August 23 | More than $98m to two whistleblowers | 1 SEC and an action brought by another agency |
| July 26 | More than $37m to one whistleblower | 1 SEC |
| July 17 | More than $37m to one whistleblower | 1 SEC |
Over $2 billion in SEC awards
Since issuing its first award in 2012, the SEC has awarded more than $2.1 billion to whistleblowers. The highest total of whistleblower awards was made in 2023, where $501m was issued in relation to nine successful SEC enforcement and other related actions.
Most enforcement actions related to whistleblower tips took place in 2021, where over 50 actions were undertaken and more than $453m awarded to whistleblowers.
The largest award ever was paid out in May 2023, where a staggering $279m was handed out to one whistleblower for their assistance in relation to a bribery case against Swedish telecommunications company Ericsson.
CFTC $8m award
For the CFTC, the largest award was made out in June, where one insider whistleblower was awarded $8m for providing significant information and assistance that led to multiple enforcement actions, both by the CFTC and other agencies.
The whistleblower helped the Commission establish that one or more derivatives market participants deceived clients about key aspects of trades. The individual also provided direct evidence of both the whistleblower’s own intent in the relevant transactions, but also knowledge and observations about clients, co-workers, and senior leadership at the liable entities.
“Whistleblowers have increasingly played a significant role in the CFTC’s enforcement actions in the digital assets space.”
Brian Young, Director, CFTC Whistleblower Office.
“This is an important whistleblower whose information led multiple regulators to bring multiple enforcement actions,” said Director of Enforcement Ian McGinley. “The whistleblower’s assistance enabled the CFTC and other agencies to more efficiently investigate and prosecute the misconduct.”
“Based on the whistleblower’s involvement in the underlying conduct, the whistleblower provided extremely valuable insider information at a critical time during the investigations,” said CFTC Whistleblower Office Director Brian Young.
“The whistleblower’s assistance enabled the CFTC and other agencies to more efficiently investigate and prosecute the misconduct,” added Director of Enforcement Ian McGinley.
| Date | CFTC award | Enforcement action count |
|---|---|---|
| December 12 | Nearly $4m to two whistleblowers | 1 CFTC |
| September 23 | $4.5m – in four orders – to seven whistleblowers | Multiple CFTC and other agency actions |
| August 29 | Over $4m to one insider whistleblower | 1 CFTC |
| August 8 | Over $1m to one whistleblower | 1 CFTC |
| June 17 | Over $8 to one insider whistleblower | Multiple CFTC and other agency actions |
| June 3 | Over $4.5m to one whistleblower | 1 CFTC |
| March 14 | $1.25m to one whistleblower | 1 CFTC |
Digital assets investigations
Another notable award was one in August, where one whistleblower received more than $1m for providing significant information and assistance that led to an enforcement action connected to digital asset markets.
During the last fiscal year, digital asset cases accounted for almost 50% of the CFTC’s docket, said McGinley, and that the majority of whistleblower tips also were related to digital assets during that period.
“Whistleblowers have increasingly played a significant role in the CFTC’s enforcement actions in the digital assets space,” commented Young.
CFTC whistleblower awards 2014-2024
| Year | Number of whistleblowers | Total amount |
|---|---|---|
| 2024 | 14 | $27.25m |
| 2023 | 4 | $33.3m |
| 2022 | 7 | $11.125m |
| 2021 | 4 | $204m |
| 2020 | 12 | $18.25m + ‘undisclosed’ further awards |
| 2019 | 7 | $16m |
| 2018 | 3 to 5* | $75.07m |
| 2017 | – | – |
| 2016 | 2 | $10.05m |
| 2015 | 1 | Approximately $290,000 |
| 2014 | 1 | Approximately $240,000 |
Since issuing its first award in 2014, the CFTC has granted whistleblower awards amounting to more than $395m. The awards are connected with enforcement actions that have resulted in monetary sanctions totalling close to $3.2 billion.
Whistleblowers may be eligible to receive between 10-30% of the monetary sanctions collected. The awards are paid from the CFTC’s Customer Protection Fund, which is financed entirely through monetary sanctions paid to the CFTC by violators of the Commodity Exchange Act.
