Ex-Coinbase Manager Arrested For Crypto Insider Trading

on July 22, Beijing time, according to multiple media reports, prosecutors from the U.S. Securities and Exchange Commission (SEC) and the Southern District of New York arrested the former product manager of Coinbase. Bloomberg reports that Ishan Wahi, a former product manager at Coinbase, disclosed the Coinbase token listing to his brother and friends Nikhil Wahi and Sameer Ramini, respectively.

Coinbase officially tweeted that Coinbase identified the individuals and provided information about them to the DOJ. Coinbase proactively monitors illegal activity and investigates alleged misconduct. Hand over bad actors to law enforcement and they face real legal consequences, including potential jail time.

The matter was mentioned in April 2022, and Twitter KOL Cobie said in his tweet that before a Coinbase listing, it was discovered that about 24 hours before the token went live, a purchase of hundreds of thousands of dollars appeared. The token’s ETH address, which only appears in the Coinbase asset list.

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And when the investigative news came out, Cobie said that after he tweeted about insider trading, he had been tweeting about the bad situation related to the Coinbase listing for months, and now, Coinbase is playing the “hero” catch .

Cobie questioned Coinbase’s ability to oversee, as there were several other wallets associated with front-running transactions he discovered after his tweet.

After Cobie identified insider trading in April, Coinbase security officer Martin said an investigation had been launched.

After the news was released, Martin publicly stated on the matter,

1/ As promised, an update on this investigation can now be shared. As mentioned earlier, such investigations are not quick, but are critical to maintaining a level playing field.

2/ During the investigation, a Coinbase employee was identified who was suspected of inappropriately sharing confidential information about Coinbase’s asset listing. Two non-Coinbase individuals with whom this individual appears to be working were also identified.

3/ Coinbase provided the DOJ with information about them and fired the employee. Today, those individuals have been charged with criminal charges in the Southern District of New York.

Specific details can be found in the indictment released by the U.S. Attorney’s Office for the Southern District of New York at the Department of Justice.

1. Defendants conducted illicit transactions in at least 25 different cryptoassets and obtained ill-gotten gains totaling approximately $1.5 million.

2. Beginning in June 2021 and continuing until April 2022, ISHAN WAHI has at least 14 prior knowledge of Coinbase’s listing information and informed others to conduct profitable transactions.

3. In order to conceal the purchased crypto assets prior to the Coinbase listing announcement, NIKHIL WAHI and RAMANI used centralized exchange accounts held in the names of others and transferred funds through multiple anonymous Ethereum blockchain wallets. NIKHIL WAHI and RAMANI also regularly create and use new Ethereum blockchain wallets without any prior transaction history to further conceal their participation in the scheme.

4. On the evening of Sunday, May 15, 2022, ISHAN WAHI was intercepted by law enforcement and prevented from leaving the country before boarding his flight to India on May 16, 2022.

5. ISHAN WAHI is charged with two counts of conspiracy to commit wire fraud and two counts of wire fraud, each with a maximum sentence of 20 years in prison.

NIKHIL WAHI is charged with one count of conspiracy to commit wire fraud and one count of wire fraud, each with a maximum sentence of 20 years in prison.

SAMEER RAMANI is charged with one count of conspiracy to commit wire fraud and one count of wire fraud, each with a maximum sentence of 20 years in prison.

6. The charges in the indictment are mere charges and the defendant is presumed innocent unless proven guilty.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/ex-coinbase-manager-arrested-for-crypto-insider-trading/
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