Ethic Alliance CEO calls on crypto whistleblowers to come forward in wake of FTX collapse
In the wake of the collapse of cryptocurrency exchange FTX, whistleblowers with knowledge of wrongdoing are encouraged to contact Ethic Alliance.
FTX collapsed in early November 2022 and filed for Chapter 11 bankruptcy on November 11. Customers and investors are facing the loss of billions of dollars. Former CEO Sam Bankman-Fried is facing Justice Department and Securities and Exchange Commission investigations, The Wall Street Journal reported. John J. Ray, who has stepped in as FTX’s new CEO, has called the exchange’s collapse an “unprecedented debacle,” The Wall Street Journal reported.
“Never in my career have I seen such a complete failure of corporate controls and such a complete absence of trustworthy financial information as occurred here,” Ray said in a bankruptcy court filing, The Wall Street Journal reported.
Venture capital firm Sequoia Capital, which invested $210 million in FTX, wrote down the value of the investment to zero, CNBC reported.
Singapore investment company Temasek Holdings said it would write down its entire investment in FTX, which The Wall Street Journal reported as $275 million.
“The collapse of FTX is one of the greatest financial debacles of the past century,” said Scott Williams, CEO of Ethic Alliance. “Its collapse is being felt around the world. Now is the time for insiders with knowledge of alleged wrongdoing at FTX to come forward. Doing so will help preserve the integrity of the global financial industry and help investors and traders recover their enormous losses.”
Ethic Alliance guides, protects and helps financially reward whistleblowers under U.S. law. Becoming an Ethic Alliance client ensures both the confidentiality of your report and attorney-client privilege protecting all of our communications.
Commodity Futures Trading Commission commissioner Kristin Johnson is urging whistleblowers to come forward.
“In the context of the digital-asset space, the value of having those vocal whistleblowers and tipsters is critical,” Johnson said November 17 , 2022, in an interview at the City & Financial Global conference in London, Bloomberg news service reported. Crypto frauds can be “heartbreaking,” she added.
The CFTC’s Whistleblower Program, created by the Dodd-Frank Act, provides monetary incentives to individuals who come forward to report possible violations of the Commodity Exchange Act. It also provides anti-retaliation protections for whistleblowers. The CFTC’s Whistleblower Office administers the program.
The CFTC pays monetary awards to eligible whistleblowers who voluntarily provide the CFTC with original information about violations of the Commodity Exchange Act the leads the CFTC to bring a successful enforcement action resulting in monetary sanctions exceeding $1 million.
The total amount of an award for an eligible enforcement action is between 10% and 30% of the amount of monetary sanctions collected in the CFTC’s enforcement action or a related action. If multiple whistleblowers are granted awards in the action, the total award amount is still limited to between 10% and 30% of the amount of the monetary sanctions collected. Whistleblowers have certain protections regarding confidentiality of their identity.
Contact Ethic Alliance at info@ethicalliance.com
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