Coinbase executives accused of insider trading

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On Thursday, July 21, the U.S. Attorney for the Southern District of New York charged three Coinbase Global executives with insider trading.

Prosecutor Damian WilliamsWilliams stated that Ishan Wahi, his brother Nikhil Wahi and Sameer Ramani colluded and used confidential information from Coinbase about a future token listing for profit. The charges carry a penalty of 20 years in prison:

“The charges are another reminder ofthat Web3 is not a law-free zone. Just last month I announced the first ever insider trading case involving NFTs, and today I am announcing the first ever insider trading case involving the cryptocurrency markets. Our message is clear: fraud is fraud, whether it happens on the blockchain or on Wall Street,” explained Damian Williams.

The US Attorney's Office believes that the Vakha brotherstried to flee to India ahead of a scheduled interview with Coinbase security department. However, law enforcement agencies intervened and did not allow the brothers to escape. They were detained on the morning of Thursday, July 21, 2022, at the Seattle airport.
In June, former top manager of the OpenSea trading platform Nathaniel Chastain was accused of
court in fraud usingelectronic communications and money laundering received from  the scheme he implemented for insider trading in non-fungible tokens. Based on the totality of charges, he faces up to 40 years in prison.