Former Coinbase product manager pleads guilty in insider trading case

Ishan Wahi, a erstwhile merchandise manager astatine Coinbase Global Inc., has admitted to 2 counts of conspiracy to perpetrate ligament fraud successful a lawsuit that U.S. prosecutors person labeled arsenic the archetypal insider trading lawsuit involving cryptocurrency.

Ex-Coinbase manager pleads blameworthy successful insider trading lawsuit https://t.co/i6fG3c3wHc pic.twitter.com/zKfjqnNpzT

According to a report by Reuters, the prosecutors claimed that Wahi disclosed backstage accusation to his member Nikhil and person Sameer Ramani, regarding imminent announcements of caller integer assets that Coinbase would alteration users to trade. The announcement aboriginal caused assets to emergence successful value, allowing Nikhil and Sameer Raman to make illicit gains of astatine slightest $1.5 million. Nikhil Wahi and Ramani were charged with utilizing Ethereum (ETH) blockchain wallets to get integer assets and trading earlier the Coinbase announcements.

"I knew that Sameer Ramani and Nikhil Wahi would usage that accusation to marque trading decisions," Ishan Wahi admitted during Tuesday's proceeding successful a Manhattan national court. "It was incorrect to misappropriate and disseminate Coinbase's property," helium added. 

As portion of his plea deal, Ishan Wahi has agreed to beryllium sentenced to betwixt 36 and 47 months successful prison. His sentencing proceeding is scheduled for May 10. His member Nikhil Wahi has already pleaded blameworthy and was sentenced to 10 months successful prison, portion Ramani remains astatine large. Coinbase reportedly shared its findings from an interior probe into the trading with the prosecutors.

Related: Crypto exchanges tackle insider trading aft caller convictions

On Jan 10, Cointelegraph reported that Ishan Wahi’s member Nikhil Wahi had been sentenced to 10 months successful prison for ligament fraud conspiracy charges. Nikhil Wahi pleaded blameworthy successful September to initiating trades based connected confidential accusation obtained from his brother, Ishan Wahi.

In Nikhil Wahi's case, U.S. prosecutors projected a situation condemnation ranging from 10 to 16 months owed to the information that helium profited astir $900,000 from his illicit activities. However, his defence lawyers projected an alternate outcome, contending that his driving unit down the discourtesy was to repay his parents for his assemblage acquisition and that helium had nary erstwhile transgression history.