• The United States Department of Justice announced that Ishan Wahi, an ex-Coinbase product manager charged with conspiracy to commit wire fraud in the first-ever insider trading case related to cryptocurrencies, pleaded guilty.
• Ishan Wahi is scheduled to be sentenced on May 10 and faces up to 20 years in prison for each count of conspiracy to commit wire fraud.
• Federal Authorities Crack Down on Crypto Industry The case involving the Wahi brother and their associate marks the first insider trading case involving cryptocurrencies and is part of federal authorities‘ global onslaught on the industry.
Former Coinbase Employee Pleads Guilty To Wire Fraud
The United States Department of Justice announced that former Coinbase employee Ishan Wahi pled guilty to two counts of conspiracy to commit wire fraud. On Tuesday, it was revealed that Ishan Wahi, an ex-Coinbase product manager charged with conspiracy to commit wire fraud in the first-ever insider trading case related to cryptocurrencies, had plead guilty. Wahi is scheduled to be sentenced on May 10 and faces up to 20 years in prison for each count of conspiracy to commit wire fraud.
The Scheme
According to reports by the New York Times, Mr. Wahi began working on Coinbase’s asset listing team in October 2020 which gave him access to information about which cryptocurrency Coinbase would offer on its platform. Ishan Wahi provided this information regarding these listings secretly tipped off his brother Nikhil and associate Sameer Ramani allowing them execute profitable trades secretly resulting in estimated $1.5 million profits between the three accused parties.
Sentencing Of Brother & Fine
In January 2021, Ishan’s brother Nikihil was sentenced after pleading guilty one count of conspiracy to commit wire fraud receiving a ten month sentence as well as a fine of $892,500 USD for his role in this scheme .
U.S Attorney Statement
Damian Williams, US attorney for Southern District Of New York made a statement saying “Whether it occurs in equity markets or crypto markets stealing confidential business information for personal profit or others is serious federal crime” illustrating governments stance against such activities within cryptocurrency sector .
Global Onslaught Against Crypto Industry
This case marks first ever insider trading case involving cryptos as part of federal authorities global onslaught against industry Nicholas Roos assistant U.S attorney who prosecuted Ishan also leads DOJ’s case against Sam Bankman Fried .