• The US Department of Justice announced that former Coinbase employee Ishan Wahi pled guilty to two counts of conspiracy to commit wire fraud.
• Wahi is accused of tipping off his brother and associate about upcoming crypto assets listed on Coinbase which allowed them to earn $1.5 million in profits.
• If convicted, Wahi faces up to 20 years in prison for each count of conspiracy to commit wire fraud.
Former Coinbase Employee Pleads Guilty To Wire Fraud Conspiracy
The United States Department of Justice announced that former Coinbase employee Ishan Wahi pled guilty to two counts of conspiracy to commit wire fraud. Wahi, along with his brother Nikhil and associate Sameer Ramani, was charged by the DOJ last year with „wire fraud conspiracy in connection with a scheme to commit insider trading in cryptocurrency assets.“
Accused Generated $1.5 Million In Illegal Profits
According to reports by the New York Times, Mr. Wahi began working on Coinbase’s asset listing team in October 2020, which gave him access to information about which cryptocurrency Coinbase would offer on its platform. Ishan Wahi provided information regarding these listings to his brother Nikhil and associate Sameer Ramani, allowing them to execute profitable trades secretly. Prosecutors estimate the three accused were involved in trades that used information about 14 listings and generated around $1.5 million in profits.
Wahi To Be Sentenced On May 10th
Ishan Wahi is scheduled to be sentenced on May 10 and faces up to 20 years in prison for each count of conspiracy for wire fraud. His brother Nikihil was sentenced back in January 2021 and slapped with a fine of $892,500 after pleading guilty for one count of conspiracy for committing wire fraud as well.
Federal Authorities Crack Down On Crypto Industry
The case involving the Wahi brothers marks the first insider trading case involving cryptocurrencies and is part of federal authorities‘ global onslaught on the industry. Nicolas Roos, an assistant U.S attorney who prosecuted Ishan Wahi is also leading a case against Sam Bankman-Fried as well..
Disclamer
This article is provided for informational purposes only and is not offered or intended as legal advice or counsel or as an endorsement or recommendation concerning any particular security transaction or investment strategy..