Coinbase screenshot

Coinbase employee is involved in the first insider trading case involving cryptocurrency

A former product manager at Coinbase Global Inc pleaded guilty Monday to wire fraud conspiracy charges in what US prosecutors called the first case of insider trading involving cryptocurrency.

Nikhil Wahi (26), admitted in a virtual court hearing before Loretta Preska, a US district judge, that he had made trades on Coinbase confidential information.

Rocket crashes-landed on the moon, Funfair Ride, Great Yarmouth (Norfolk)Rocket crashed-landed upon the moon. Stock photo

Buttcoin cheers when bitcoin plummets: The online community praying for crypto’s end

Prosecutors allege that Ishan Wahi was the former product manager and shared confidential information about new digital assets Coinbase had planned to allow users to trade with their brother Sameer Ramani.

Nikhil Wahi allegedly used Ethereum Blockchain wallets to acquire assets. Ramani allegedly traded the assets at least 14 times prior to Coinbase announcements in April 2022 and June 2021.

Prosecutors stated that these announcements caused assets to increase in value and generated gains of at least $1.5 million.

Nikhil Wahi stated that he knew it was wrong for him to receive Coinbase confidential information and trade based upon that information.

He stated that he knew that his guilty plea would result in him being deported from the United States.

Nikhil Wahi had previously pleaded guilty to the charges last month. However, he changed his plea in an agreement with the prosecutors. His sentencing hearing will take place in December.

Ishan Wahi pleaded not guilty. He is scheduled to next appear in court on 22 February 2023. Ramani, who was also indicted, is still at large.

Coinbase said that it shared its findings from an internal investigation into trading with prosecutors. It is one of the largest cryptocurrency exchanges in the world.

Leave a Comment

Scroll to Top