Ex-Coinbase Manager’s Brother Sentenced to Prison in Crypto Insider Trading Case

A erstwhile Coinbase employee’s member has been sentenced to 10 months successful situation successful what the U.S. Department of Justice (DOJ) called a “groundbreaking cryptocurrency insider trading case.”

‘Groundbreaking’ Crypto Insider Trading Case

The U.S. Department of Justice (DOJ) announced Tuesday that Nikhil Wahi “was sentenced to 10 months successful prison” successful a “groundbreaking cryptocurrency insider trading case.” He pled guilty to 1 number of conspiracy to perpetrate ligament fraud.

The Justice Department explained that Wahi was sentenced “for his information successful a strategy to perpetrate insider trading successful cryptocurrency assets by utilizing confidential accusation from his brother, a erstwhile merchandise manager astatine Coinbase Global Inc. (Coinbase), astir which crypto assets were scheduled to beryllium listed connected Coinbase’s exchanges.”

Referring to the lawsuit arsenic “the first-ever insider trading case involving cryptocurrency markets,” U.S. Attorney Damian Williams commented:

At a clip erstwhile the cryptocurrency markets person been plagued by fear, uncertainty, and doubt, insider trading creates the content that everything is rigged and that lone radical with concealed advantages tin marque a existent buck.

“Today’s condemnation makes wide that the cryptocurrency markets are not lawless. There are existent consequences to amerciable insider trading, wherever and whenever it occurs,” helium continued.

The DOJ and the U.S. Securities and Exchange Commission (SEC) filed “insider trading charges” successful July past twelvemonth against Nikhil Wahi, his member Ishan Wahi, and their friend, Sameer Ramani.

The authorities explained that astir October 2020, Nikhil Wahi obtained confidential accusation from his brother, who was moving connected which cryptocurrencies would beryllium listed connected Coinbase exchanges. He past anonymously acquired those crypto assets soon earlier Coinbase publically announced that it was listing them connected its exchanges.

“On aggregate occasions pursuing Coinbase’s nationalist listing announcements, Nikhil Wahi sold the crypto assets for a profit,” the DOJ noted, adding:

In summation to the situation sentence, Wahi, 27, of Seattle, Washington, was ordered to wage $892,500 successful forfeiture.

Do you deliberation the ex-Coinbase employee’s member should spell to situation for 10 months for insider trading? Let america cognize successful the comments conception below.

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