Coinbase Exec Convicted in Crypto Firm's First US Insider Trading Case

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A former Coinbase product manager has been jailed for insider trading.
Ishan Wahi and his co-conspirators made $1.5 million through illegal cryptocurrency trading.
This is the first case of cryptocurrency insider trading in the United States

The cryptocurrency sector has been under intense regulatory scrutiny since FTX breakdown Highlighting illegal activity in the sector. As the courts ramped up trials, a historic conviction hit the industry.

On Tuesday, May 9th, Ishan is a previous revelation Coinbase Global Inc product manager, sentenced to two years in prison for insider trading.

The guilty verdict comes in For the first time ever A US insider trading case involving cryptocurrency.

Wahi made $1.5 million doing insider trading on Coinbase

we. District Judge Loretta Prisca in Manhattan federal court sentenced Wahi to two counts of conspiracy to commit wire fraud.

Judge Prisca, in her sentencing remarks, called Wahi’s actions a “huge abuse” of the trust Coinbase had placed in him.

As a product manager at Coinbase, Wahi had access to confidential company information. This included knowing which digital assets would be listed on Coinbase prior to the public announcement.

This gives Wahi a significant advantage in trading, as the value of cryptocurrencies often increases exponentially after being listed on a major exchange.

Wahi shared this lowdown with his brother, Nikhil Wahi, and their friend Sameer Ramani. Armed with knowledge of the digital assets that Coinbase would list, the trio were able to purchase these assets ahead of the public announcement.

The group traded 55 digital assets on Coinbase between June 2021 and April 2022. According to the allegation, Wahi and his co-conspirators made $1.5 million thanks to the scheme.

The ruling followed a flimsy guilty plea in February. In September Nikhil Wahi also pleaded guilty to conspiracy to defraud and was sentenced to 10 months in prison in January.

on the flip side

American authorities are still searching for Samir Ramani, one of the co-conspirators with Revelation.
The US Securities and Exchange Commission has filed a separate lawsuit against Ishan and Nikhil Wahi. The Securities and Exchange Commission alleged that the brothers committed securities fraud. But the agency agreed with the brothers to settle the claims.