© Reuters Ex-Coinbase Product Manager Sentenced to Two Years in Prison for Insider Trading
- Ishan Wahi, former Coinbase (NASDAQ:) product manager, has been sentenced to two years in prison for insider trading.
- False disclosure of confidential information resulted in ill-gotten gains of more than $1 million.
- Nate Chastain, former head of product for OpenSea, was found guilty of money laundering and wire fraud.
On May 9, Ishan Wahi, a former product manager at Coinbase, was convicted and sentenced to two years in prison by the Department of Justice (DOJ) for his involvement in insider trading, Bloomberg reported. This event refocused public scrutiny on the problem of insider trading within the cryptocurrency sector and the serious consequences that could have.
In July 2022, Wahi was detained and charged with wire fraud, in which he allegedly disclosed confidential details regarding upcoming cryptocurrency listings to his brother and one other person, resulting in ill-gotten gains in excess of $1 million.
This is the second time the Department of Justice has filed a lawsuit regarding insider trading in the cryptocurrency space.
On May 3, a verdict was reached in the case of Nate Chastain, former head of product at OpenSea. Chastain was found guilty of money laundering and wire fraud, after he profited from privileged information to turn a profit from trading NFTs. While awaiting sentencing, Chastain will likely face a maximum sentence of 40 years for the charges against him.
Meanwhile, Ishaan Wahi’s brother, Nikhil Wahi, pleaded guilty to the charge of conspiracy to commit wire fraud and was sentenced to 10 months in prison in January.
Despite the defense team’s plea for a prison sentence of no more than 10 months, Wahi was sentenced to two years in prison. While the term exceeds the desired outcome of his lawyers, it is still far short of the maximum sentence of 60 years that could have been imposed for his involvement in illegal activity.
A former Coinbase product manager jailed for two years for insider trading made his first appearance in Coinbase.