Ex-Coinbase manager's brother sentenced to 10 months in insider trading case

The member of a erstwhile Coinbase merchandise manager, Nikhil Wahi, has been sentenced to 10 months successful situation for ligament fraud conspiracy charges, successful what is believed to beryllium the archetypal insider trading lawsuit involving cryptocurrency. 

As reported by Reuters, Nikhil Wahi pleaded guilty successful September to initiating trades based connected confidential accusation obtained from his brother, Ishan Wahi, who was a erstwhile Coinbase merchandise manager.

Ex-Coinbase manager's member sentenced to 10 months successful insider trading lawsuit https://t.co/Kyy6DqSb9D pic.twitter.com/ruQjwr5i4h

— Reuters (@Reuters) January 10, 2023

Nikhil Wahi admitted to trading with the usage of wrong accusation obtained from Coinbase. According to the national prosecutors successful Manhattan, Ishan Wahi, a erstwhile merchandise manager, had shared confidential accusation regarding caller integer assets that Coinbase was readying to adhd to its trading platform, with some his member and their person Sameer Ramani.

The U.S. prosecutors recommended a situation condemnation of betwixt 10 to 16 months for Nikhil Wahi, citing the information that helium had made astir $900,000 successful profits from his amerciable actions. However, his defence attorneys suggested a antithetic outcome, arguing that Nikhil's information for committing the transgression was to repay his parents for paying for his assemblage acquisition and that helium had nary anterior transgression record. 

Related: Coinbase to chopped different 20% of its workforce successful the 2nd question of layoffs

The sentencing of Nikhil Wahi is taking spot amid accrued scrutiny from U.S. prosecutors and regulators toward cryptocurrency companies and their executives. 

On Jan 4, Coinbase reached an statement with the New York State Department of Financial Services (NYDFS) pursuing an probe into the company's compliance program. According to NYDFS, Coinbase has agreed to wage a $50 cardinal good successful effect to violations of New York's fiscal services and banking laws and besides to put $50 cardinal to close its compliance program. The probe revealed that Coinbase had assorted deficiencies related to anti-money laundering requirements and issues with its process for onboarding users and monitoring transactions.

Coinbase’s woes look to continue, arsenic connected Jan 10, Coinbase CEO Brian Armstrong officially announced that Coinbase volition chopped 950 jobs as portion of the company’s measures to trim the firm’s operating costs by astir 25% amid the ongoing crypto winter.