[HN Gopher] SEC Issues Largest-Ever Whistleblower Award of $279M
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       SEC Issues Largest-Ever Whistleblower Award of $279M
        
       Author : mfiguiere
       Score  : 40 points
       Date   : 2023-05-05 15:35 UTC (7 hours ago)
        
 (HTM) web link (www.sec.gov)
 (TXT) w3m dump (www.sec.gov)
        
       | quotz wrote:
       | Is this maybe connected to the Sam Bankman Fried case? FTX,
       | Alameda Research and the sorts. Apparently the one of their execs
       | switched sides, forgot her name
        
         | elliekelly wrote:
         | Exceedingly unlikely. Cutting a deal and agreeing to testify
         | for the criminal prosecution _after_ you've been caught doesn't
         | make you a whistleblower. It's also way too early. The FTX
         | enforcement actions are only just getting underway.
        
       | [deleted]
        
       | PM_me_your_math wrote:
       | It seems so grotesque. I get the incentive to report criminal
       | activity, but 1/4 billion seems excessive.
        
         | thewildginger wrote:
         | Did you read the article? It explains the reason why the amount
         | is so high.
        
           | MichaelZuo wrote:
           | Considering the account is 7 months old and it's commenting
           | history... it's likely a kid or a troll behind the account.
        
         | alfalfasprout wrote:
         | Grotesque? The fund that pays these things out is getting way
         | more than that back from this whistleblower's help (in fines,
         | etc. paid out by the criminals).
        
       | tedunangst wrote:
       | Bet they're thankful they went through SEC and not CFTC.
       | 
       | https://www.whistleblowers.org/save-the-cftc-whistleblower-p...
        
       | indigodaddy wrote:
       | Is it normal to not even reveal what case this is related to? Or
       | perhaps to early to reveal? Obviously they won't reveal the
       | whistleblower name.
        
         | theGnuMe wrote:
         | Requires a successful prosecution so probably past tense. My
         | guess is wall street in general.. 16 firms paid 1.1 billion a
         | couple years ago collectively. But it could be someone else..
         | the SEC took in 6.4 billion in penalties last year.
         | 
         | The crypto ones are going to be off the hook if there are any
         | whistleblowers that outed them.
        
         | TechBro8615 wrote:
         | SEC whistleblower awards range from 10 to 30 percent of fines
         | collected, so presumably this was in exchange for information
         | about a case that led to collections somewhere in between the
         | range of $920 million to $2.79 billion. Assuming the SEC has
         | already published the successful prosecution of the underlying
         | case, you can probably figure out which one it was. And I bet
         | the total was a nice even multiple of 2.79.
        
       | ivraatiems wrote:
       | How hard is it likely to be, realistically, to figure out who got
       | this money? That is way, way too big a windfall to effectively
       | hide. Even getting rid of it would take an enormous amount of
       | work, if you didn't want it.
       | 
       | This is like with lottery winners - anonymity won't necessarily
       | protect you. I'm not sure this encourages me to be a
       | whistleblower... it would create so many more stressors after
       | what was already a phenomenally stressful time. $10m or so would
       | be easier to hide.
        
         | markus_zhang wrote:
         | I think with that kind of $$$ it's impossible to be Anon.
         | Someone better get out of the country, preferably to some
         | places untouchable and lay low.
        
           | ROTMetro wrote:
           | Unless they somehow did this against cartel guys or a
           | motorcycle club this person has nothing to worry about.
        
         | matt_s wrote:
         | This award has to be for something against a large financial
         | firm, a $279M award is based on a % of the damage in some way I
         | believe. The person likely had to be intimately familiar with
         | whatever was reported so they are highly likely to know the ins
         | and outs of dealing with large numbers of digits of money and
         | financial products/solutions beyond what retail/layperson would
         | be aware of. I think they might have ideas on what they would
         | want to do with the money and/or already be financially well
         | off that buying more things doesn't really make large life
         | impacts anymore (i.e well into 6 digit earnings territory). I
         | think its likely if they wanted this to not be publicly known
         | its entirely plausible they could do that.
         | 
         | Unless it is a low paid janitorial engineer that was reading
         | the trash.
        
         | takinola wrote:
         | I don't think the issue will be hiding that you have the money.
         | That's almost trivial. The person next to you on the bus could
         | have a huge amount of money but until they start spending, you
         | have no way of knowing.
         | 
         | However, given the size of the payment, it must be possible to
         | work out what enforcement this award is related to. Once that
         | is established, the court documents should reveal the potential
         | whistleblower's identity.
        
         | d23 wrote:
         | For 300 million dollars, I think I'd manage.
        
           | ivraatiems wrote:
           | What if they threatened your family? Your kids? What if you
           | had to move to another state or another country? Could you
           | ever have normal friends again? Move around the world without
           | a bodyguard and bulletproof windows?
           | 
           | Large sums of money don't give you security in your current
           | lifestyle. They completely and totally change your existence
           | in permanent and often negative ways.
        
             | comfypotato wrote:
             | 300 million easily pays for literally and metaphorically
             | bulletproof security indefinitely. What security-related
             | lifestyle changes couldn't be overcome with this sum of
             | money?
             | 
             | On a different note, the lottery typically ruins people's
             | lives. There's even a TV show about it. People just can't
             | adjust to that kind of change in wealth. I think this would
             | be no different.
        
             | d23 wrote:
             | The problem: where are you getting literally any of this
             | from? You've hopped up like 4 chains of unfounded
             | assumptions.
        
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