Former Coinbase employee charged in first crypto insider trading case
The Hindu
A former Coinbase employee, his brother, and a Houston man, have been charged in what might be the U.S. government’s first cryptocurrency insider trading case
A former Coinbase product manager and his brother, along with a Houston man, were charged Thursday in what federal authorities described as the U.S. government’s first cryptocurrency insider trading case.
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The brothers — Ishan Wahi and Nikhil Wahi — were arrested while the Houston man, Sameer Ramani, remained at large, federal authorities said as they announced the unsealing of an indictment in a federal court in Manhattan.
Authorities said Ishan Wahi, 32, was a product manager at Coinbase Global Inc., one of the world’s largest cryptocurrency exchanges, based in Seattle, when he provided tips to Nikhil Wahi, 26, and their friend, Ramani, 33. All three were charged with wire fraud conspiracy and wire fraud.
The indictment said Ishan Wahi was stopped by law enforcement prior to boarding a May 16 flight to India and was prevented from leaving the country. In the hours before the flight, he had telephoned and sent texts to his brother and Ramani to alert them about an investigation Coinbase was carrying out, according to a release.
Ishan Wahi bought a one-way airline ticket to India in an “unsuccessful attempt to flee from the United States” after agreeing to be interviewed for an internal probe by Coinbase, the indictment said.
U.S. Attorney Damian Williams said the prosecution represents the government’s first insider trading case involving cryptocurrency markets. He said it was a reminder that the cryptocurrency markets are not a law-free zone.
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