Former Coinbase employee charged in first crypto insider trading case
Categories: Crypto News US
FormerCoinbase employee charged in first crypto insider trading case
Three people, including a former Coinbase employee, havebeen charged with conspiracy to commit wire fraud and wire fraud over aninsider trading tip-off scheme that ran from June 2021 to April 2022, allowingthe accused to realize more than US$1.5 million And there was unrealisticprofit.
Three people, including a former Coinbase employee, havebeen charged with conspiracy to commit wire fraud and wire fraud over aninsider trading tip-off scheme that ran from June 2021 to April 2022, allowingthe accused to realize more than US$1.5 million And there was unrealisticprofit.
It is alleged that Ishaan Wahi used his extensive knowledge ofupcoming Coinbase asset listings to tip Nikhil Wahi and Ramani, who purchaseda large amount of assets just before the announcement of their listings andprofited them soon after the announcements. sold for. It is alleged that thetrio used this method on at least 14 separate occasions, trading at least 25different cryptocurrencies.
In an attempt to cover their tracks, Nikhil Wahi and Ramanicreated accounts on centralized exchanges in the names of others andtransferred their assets through several anonymous Ethereum accounts. The endof the insider trading scheme began on April 12 of this year when a Twitteruser noted that an Ethereum wallet had purchased hundreds of thousands of dollarsworth of digital assets just 24 hours before a Coinbase listing. weredeclared. The wallet was later found under Ramani's control.
Following this tweet, Coinbase launched an investigationinto the matter, and on May 11, Coinbase's Director of SecurityOperations emailed Ishaan Wahi asking him to appear for an in-person meeting onMay 16 at Coinbase's headquarters in Seattle, Washington. In the evening of May15, Ishaan Wahi bought a one-way ticket to India, which was scheduled to departthe next morning, just before a meeting with Coinbase security.
However, before he could board his flight, Wahi was stoppedby law enforcement and prevented from leaving the country. Each defendant ischarged with conspiracy to commit wire fraud and one count of wire fraud – eachcharge carries a maximum sentence of 20 years in prison. Insider trading is anongoing issue that undermines trust in both regulators and markets.
Last September, the head of product development for NFTmarketplace OpenC resigned following allegations of insider trading, andquestions raised about the integrity of the US Federal Reserve following theresignation of two regional Fed chairmen over allegations of insider trading.