Former Coinbase Executive and Brother Settle SEC Allegations of Cryptocurrency Insider Trading
Former Coinbase product manager Ishan Wahi and his brother, Nikhil Wahi, have reached an agreement with the U.S. Securities and Exchange Commission (SEC) to settle charges related to an insider trading scheme involving cryptocurrencies. The SEC filed a complaint in July 2022, accusing Ishan Wahi of sharing confidential information about upcoming crypto asset listings on Coinbase with his brother and a friend, Sameer Raman. Taking advantage of this insider tip, Nikhil Wahi and Raman purchased tokens, resulting in $1.5 million in illegal profits.
The SEC stated that nine of the 25 crypto assets purchased were classified as securities. As part of the settlement, the Wahi brothers have agreed to refrain from denying the SEC’s allegations. They will be permanently prohibited from violating the Securities Exchange Act and Rule 10b-5 and will be required to pay back the ill-gotten gains, along with prejudgment interest. Gurbir S. Grewal, Director of the SEC’s Division of Enforcement, emphasized that although the technology involved may be new, the case represents a classic instance of insider trading. The SEC does not exempt crypto asset securities from the rules against insider trading, and the federal securities laws apply to such cases.
Clever Robot News Desk 2ndJune 2023