Former Coinbase Product Manager Accused of Insider Trading

The U.S. Department of Justice indicted Ishan Wahi (a former Coinbase manager) and two others for obtaining approximately $1.5million through cryptocurrency insider trading on Coinbase.

This is the first instance of insider trading in crypto, according to the Department of Justice. Coinbase provided the defendants with privileged information that allowed them to sell and invest in cryptocurrencies.

Ishan Wahi, his brother Nikhil Wahi, and Ishan Wahi were both arrested in Seattle, Washington. Wahi’s friend and partner Sameer Ramani remains free, but he is wanted.

Ishan Wahi used his Coinbase Position to commit fraud

Wahi was granted access to high-ranking Coinbase employees’ messaging groups. He was able to access exclusive messaging groups for high-ranking Coinbase employees and received information about the date that certain cryptocurrencies would be listed.

This investigation was aided by a Twitter post. This account claimed that someone had purchased “hundreds and thousands of dollars” of tokens that were featured in the Coinbase Asset Listing post 24 hours prior to publication. Coinbase responded and said that it was conducting appropriate investigations and that anyone involved in fraudulent activities would be fired and referred to the prosecution.

Coinbase spent a month investigating Wahi. They scheduled a meeting for May 16th. However, Wahi bought a one-way ticket to India the night before. Wahi was arrested at the airport and couldn’t escape. Wahi had sent numerous messages to his brother, and his business partner, informing them about the investigation before he was arrested.

Each of the three defendants are facing wire fraud and conspiracy charges, with a maximum sentence exceeding 20 years. The judge will determine the maximum penalty.

Crypto Crime Doesn’t Pay

Coinbase has been working with US authorities for a while. We have helped them fight crime and made sure that their business is compliant with federal regulations.

These charges will be a reminder for U.S. attorney Damian Williams that U.S. authorities are effective in fighting crime.

Web3 is not an unregulated zone. Today’s charges serve as a reminder. Last month, I had announced the first ever insider trading cases involving NFTs. Today, I am announcing the first ever insider trade case involving cryptocurrency markets. These charges are a clear message: Fraud is fraud regardless of whether it happens on the blockchain or Wall Street.

Michael J. Driscoll is the FBI Assistant Director. He stated that although the fraud was committed on a cryptocurrency exchange, and not in a traditional financial market, today’s actions demonstrate “the FBI’s commitment to protecting integrity of all financial markets.”

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Marla Brooks

Marla Brooks – Financial Analysis My name is Marla Brooks, and I am the mainstream behind the””  for the powerful and most delicate insights into the latest activities in the financial analysis category. I started my journey as an independent financial consultant. I had approximately nine years of experience in this field. I am free soul so; my passion for exploring the world has taken me to the nations across the globe and given me the chance to report for a portion of the best news associations. Currently, I am a full-time editor as experienced in finance and started to use my abilities.

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