Ex-Coinbase Employee Pleads Guilty to Insider Trading Scheme

• Former Coinbase employee, Ishan Wahi, has pleaded guilty to two counts of conspiracy to commit wire fraud.
• This is the first time an insider trading case involving cryptocurrency has been recorded in financial crime books.
• He and his brother Nikhil were involved in a scheme that resulted in them purchasing tokens prior to their listing on Coinbase and subsequently selling for a profit when their prices spiked.

Former Coinbase Employee Pleads Guilty to Insider Trading

The Department of Justice recently announced that former Coinbase product manager Ishan Wahi has pled guilty to two counts of conspiracy to commit wire fraud. This marks the first ever insider trading case involving cryptocurrency, as Wahi was found guilty of illegally obtaining confidential information about which tokens would be listed on the popular trading platform.

Scheme Orchestrated by Former Employee

Wahi got his brother and friend involved in purchasing the tokens before they were listed on Coinbase; when the prices rose, they sold the assets at a profit. The scheme began more than two years ago in October 2020, with Wahi’s brother Nikhil receiving a financial penalty of $900,000 and being ordered to serve ten months in prison back in January. Now that Ishan has pled guilty, it is likely he will be required to serve more time due to his closer connections with Coinbase and instigation of the plan.

Insider Trading Serious Federal Crime

U.S Attorney Damian Williams commented on this case: „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.“

Bad Run of Luck for Exchange

Coinbase has had numerous legal issues over recent years as this incident adds onto their list of troubles – including accusations related to money laundering and illegal activity being conducted through its exchange platform. Despite these issues, Coinbase remains one of most popular crypto exchanges among traders around world due its user-friendly platform and wide range features available for users.

Sentencing Scheduled for May 2023

Ishan Wahi will be sentenced on May 2023 where further details related to his punishment will be disclosed then. This case serves as a reminder that all investors must always remain vigilant when it comes conducting trades within any market – crypto or otherwise – as serious consequences can arise from partaking in illegal activities such as insider trading