It’s not easy to speak out against your own company, let alone about relatively technical issues such as co-mingling.
In the lead-up to the eventual collapse of cryptocurrency exchange FTX, internal whistleblowers expressed their concerns about the company’s severe governance and regulatory deficiencies. These issues, including the violation of internal control standards and co-mingling of client funds, were so blatant that several insiders felt compelled to report them. This is a testament to the importance of whistleblowing laws and corporate programs designed to encourage such disclosures. If these concerns had been addressed with the necessary attention and diligence, it could have exposed significant corporate misconduct earlier and potentially averted some of the subsequent losses.
The FTX case, with multiple whistleblowing attempts preceding its downfall, stands out as an exception. In most instances of corporate wrongdoing, witnesses opt to stay silent to safeguard their jobs and maintain peace. The majority of whistleblowers is women but their integrity comes with significant cost: most whistleblowers experience harassment after reporting allegations against their company, and a lot of them lose their jobs. Additional consequences include being blacklisted from future employment opportunities, enduring social isolation from colleagues, and suffering severe psychological stress.
Remember folks: INFORMATION MARKET MUST ALSO BE FREE
