The institutional problems go deeper than this. Of the graduate students who had the courage to do the right thing, how many of them are going to find good jobs, even the excellent jobs their show of integrity deserves? Not many. They don't have actual work/publications to show, they'll be labelled potential troublemaker, backstabber, damaged goods - or they'll just omit it from their resume to avoid to be tainted by association.

When what they deserve is, on the contrary, to teach the level where they lead a lab.