The defunct crypto exchange FTX reportedly paid over $25 million to six whistleblowers who uncovered its operational issues. The whistleblowers, including an FTX.US executive, exposed the FTX Group's misleading of regulators and investors, inadequate corporate structure, market manipulation, and insider trading. Despite these payouts, FTX still owes approximately $11 billion to investors who suffered losses following the exchange's collapse.
In response to the examiner's report, former FTX.US President Brett Harrison, who resigned before the exchange's collapse, denied receiving a $16 million settlement. He clarified that he was allowed to retain some of his company equity upon departure, and his exit agreement contained standard non-disparagement and non-disclosure clauses.
FTX collapsed in November 2022 and has been undergoing bankruptcy proceedings since then. In a subsequent trial, former CEO Sam Bankman-Fried was found guilty of seven criminal counts of defrauding FTX's customers, lenders, and investors, resulting in a 25-year prison sentence.