Insider Trading Charges Filed Against Ex-Coinbase Manager
The first case of Coinbase insider trading has resulted in charges. US prosecutors in Manhattan have charged a former product manager with wire fraud, according to the New York Times.
Product manager Ishan Wahi and his brother, Nikhil Wahi, were taken into custody in Seattle on Thursday. Another defendant, Sameer Ramani, remains at large, and the Securities and Exchange Commission (SEC) has filed civil accusations against him as well.
Coinbase insider trading is the subject of an investigation by the SEC
Lawyers representing Ishan Wahi, 32, released a statement saying that he is "innocent of all crime and intends to defend himself forcefully."
Requests for feedback from Nikhil Wahi's lawyer were not immediately returned. A lawyer for Ramani was not immediately available to Reuters.
Prosecutors allege that Ishan Wahi divulged sensitive information on upcoming Coinbase announcements about additional cryptocurrency assets that users would soon be able to trade on the exchange. He booked a flight to India after being summoned to Coinbase's Seattle headquarters by the company's security director, according to the report.
For the first time in insider trading of digital assets, an ex-NFT marketplace employee has been charged. Law enforcement prevented him from boarding that flight on May 16. The bond for Ishan Wahi was set at $1 million and his passports had to be surrendered.
Despite his alleged attempt to run, prosecutors did not urge that he be arrested. On August 2, he will appear in federal court in Manhattan.
A total of 25 crypto assets were allegedly bought and sold for a profit by Nikhil Wahi (26) and Ramani (33), it states in the related civil accusations, nine of which the SEC said it had classified as securities.
Cryptoqueen added to FBI's list of top 10 most wanted
The SEC's investigation into Coinbase's listing of the coins deemed securities in the complaint is ongoing, according to an SEC official. At least 14 times before Coinbase's statements in June 2021 and April 2022, Ethereum blockchain wallets were used to acquire the assets, according to prosecutors.
At least $1.5 million in ill-gotten gains were generated as a result of these transactions.
An internal investigation into the trading was shared with authorities, according to Coinbase's chief security officer Philip Martin.
For breaking crypto news on Coinbase and more, go to Latest Moni.
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