Ishan Wahi gave confidential information about the upcoming announcement to his brother.
This announcement made to generate illegal gains of at least $1.5 million.
The former product manager for Coinbase Global Inc (COIN.O), Ishan Wahi, entered a guilty plea on Tuesday in what U.S. prosecutors have dubbed the first insider trading case using cryptocurrency. As per reports, the prosecutors claim that Wahi gave his brother Nikhil and friend Sameer Ramani access to confidential information. It was about forthcoming announcements of new digital assets that Coinbase users will be able to trade.
U.S. Attorney Damian Williams stated:
Wahi is the first insider to admit guilt in an insider trading case involving the cryptocurrency markets. Whether it occurs in the equity markets or the crypto markets, stealing confidential business information for your own personal profit or the profit of others is a serious federal crime.
Illegal Gains of $1.5 Million
Nikhil Wahi and Ramani accused of purchasing digital assets and exchanging them before the Coinbase announcements by utilizing Ethereum (ETH) blockchain wallets. Nikhil and Sameer Raman were able to make illegal gains of at least $1.5 million as a result of the announcement’s significant rise in asset value. A well-known Twitter account in the crypto world got notice of the trading activity. And Also reported it, which led Coinbase to look into the situation.
Ishan Wahi was engaged by Coinbase as a product manager on a Coinbase asset listing team beginning in or around October 2020. In that capacity, Wahi was involved in the highly secretive process of adding cryptocurrency assets to Coinbase’s exchanges. And had complete and in-depth knowledge of the cryptocurrency assets that Coinbase planned to list as well as the date of the public announcements regarding those listings.