Source: blockchain.news
Ishan Wahi, a former product manager at Coinbase Global Inc., pleaded guilty to two counts of conspiracy to commit wire fraud in a case that the US attorney’s office has called the first insider trading case involving bitcoin.
According to a story published by Reuters on Feb. 7, authorities allege that Wahi gave confidential information to his brother Nikhil and his friend Sameer Ramani, including upcoming announcements of new digital assets that Coinbase customers will be able to trade. The announcement resulted in a subsequent increase in asset values, making it possible for Nikhil and Sameer Raman to make illegal profits of at least $1.5 million. Nikhil Wahi and Ramani are accused of using Ethereum blockchain wallets to purchase digital assets and engage in trading prior to notifications made by Coinbase.
Ishan Wahi confessed at the February 7 hearing in Manhattan federal court that he knew Sameer Ramani and Nikhil Wahi would use that information to make business decisions. The hearing took place in federal court. He went on to say, “It was inappropriate to misappropriate and spread ownership of Coinbase.”
Ishan Wahi has reached an agreement with the prosecution whereby he would serve between 36 and 47 months in prison in exchange for his guilty plea. The date set for his hearing to determine his sentence is May 10. Coinbase reportedly provided authorities with the results of an internal investigation the company had conducted into the trade.
Due to the fact that Nikhil Wahi profited from approximately $900,000 from his illegal actions, US prosecutors recommended that he serve a prison term of ten to sixteen months in prison. This recommendation was made due to the fact that he engaged in illegal activities. However, his defense attorneys offered an alternative verdict, arguing that the man’s motivation for the act was to repay his parents for the money they had invested in his college degree and that the man had no record of committing any other crimes.
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