Coinbase employee arrested for insider trading

On July 21, US prosecutors said that a former product manager of Coinbase exchange and two others have been charged with wire fraud, in the first insider trading case involving the company. electronic money.

Ishan Wahi, the product manager of the cryptocurrency exchange, and his brother Nikhil Wahi were arrested on July 21 in Seattle.

Sameer Ramani, friend of the Wahi brothers, who is currently in hiding also faces civil charges from the US Securities and Exchange Commission (SEC).

Insider trading is a thorny problem in the cryptocurrency sector.
(Photo: Business Insider)

Prosecutors said that Ishan Wahi disclosed confidential information regarding announcements regarding new crypto assets that Coinbase intends to allow users to trade through the exchange.

Authorities also said that Ishan Wahi had intended to fly overseas when he purchased a one-way ticket to India, after Coinbase’s security chief summoned him to the company’s Seattle office to meeting. However, Ishan’s attempt to “escape” was unsuccessful when it was stopped at the airport on May 16.

Meanwhile, the SEC accused Nikhil Wahi, 26, and Ramani, 33, of trading at least 25 crypto assets for profit, nine of which the agency identified as securities. .

According to the indictment, both subjects used the Ethereum blockchain wallet to buy and sell with inside information at least 14 times between June 2021 and April 2022, earning illicit profits. , 5 million USD.

Regarding the incident, an SEC official informed that the investigation is still ongoing and declined to comment on whether it will pursue legal action against Coinbase for listing tokens that are considered securities. or not.

In the blog post, Coinbase confirmed that the SEC had separate charges of securities fraud against three subjects, but noted that federal prosecutors do not prosecute cases in this area.

“None of the assets listed on our platform are securities. The SEC’s allegations may cause an unfortunate distraction to law enforcement actions,” Coinbase posted.

Last month, federal prosecutors in Manhattan also charged a former product manager with OpenSea, the largest online marketplace for non-fungible tokenization (NFT), of conducting internal transactions. cockroaches.

Vinh Ngo


Leave a Reply

Your email address will not be published. Required fields are marked *