Whistleblower Program (SEC)

The SEC Whistleblower Program was created by Section 922 of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 and is administered by the SEC's Office of the Whistleblower. It was designed to incentivize individuals with inside knowledge of securities fraud — including employees, former employees, accountants, lawyers, and others with access to company information — to come forward with credible, specific information that the SEC might not otherwise obtain through its own examination and enforcement efforts.

To qualify for an award, a whistleblower must voluntarily provide original information to the SEC that leads to a successful enforcement action resulting in sanctions exceeding $1 million. Original information generally means information not already known to the SEC from other sources, derived from the whistleblower's independent knowledge or analysis. Awards range from 10% to 30% of the monetary sanctions collected, with the SEC exercising discretion based on factors including the significance of the information, the degree of assistance provided, the public interest served, and whether the whistleblower delayed reporting or participated in the underlying misconduct.

The program includes strong anti-retaliation protections. Employers are prohibited from taking adverse employment action — including termination, demotion, suspension, or harassment — against an employee because that employee reported a potential violation to the SEC. Whistleblowers who experience retaliation can file a complaint with OSHA or pursue a private lawsuit seeking reinstatement, double back pay, and attorney fees.

Whistleblowers may submit tips anonymously through an attorney, in which case they retain the right to collect any award that may result, even though their identity is not disclosed to the SEC until the award determination process. The SEC has committed to protecting the confidentiality of whistleblower identities to the maximum extent permitted by law and does not share identifying information with respondents in enforcement actions if doing so could reasonably be expected to reveal the whistleblower's identity.

Since the program's inception in 2011, the SEC has awarded more than $2 billion to hundreds of whistleblowers. Individual awards have ranged from a few thousand dollars to record-setting awards exceeding $279 million in a single case. The program has contributed to major enforcement actions involving financial statement fraud, Foreign Corrupt Practices Act violations, investment adviser misconduct, and cryptocurrency fraud. The CFTC (Commodity Futures Trading Commission) operates a parallel whistleblower program covering commodities and futures markets, including much of the cryptocurrency derivatives market.