Relative of former Coinbase executive pleads guilty to insider trading

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In July, the SEC charged former Coinbase product manager Ishan Wahi and his brother Nikhil Wahi with insider trading. Nikhil has confessed to at least one instance of such a crime.

As the prosecutor for the Southern District emphasizedNew York Damian Williams, Nikhil Wahi used information provided by his brother on the future listing of tokens on the Coinbase Global platform. He bought tokens in advance and made money on the rise in price after listing, which is insider trading.

"Less than 2 months after the accusation,Nikhil admitted in court that he used confidential Coinbase information for trading. For the first time in history, the accused pleaded guilty to insider trading in the cryptocurrency market. This is to remind participants that law enforcement will always monitor and stop crime, even with the latest technology. Now Nikhil Wahi is awaiting sentencing and must return the illegally obtained profits,” said Damian Williams.

According to prosecutors, Ishan Wahi worked inCoinbase Product Manager since October 2020, specifically in the asset listing team. He had access to confidential information, and between July 2021 and May 2022, he and his brother Nikhil repeatedly purchased various tokens before the official announcement of their listing on the site. 

They tried to hide their actions thanks tothe use of various anonymous wallets registered with fictitious persons on centralized exchanges. Nikhil Wahi faces up to 20 years in prison. The sentence for the insider trading participant is due to be announced on December 13.

It was previously reported that the brothers tried to escape to India, but American law enforcement agencies managed to detain them at Seattle airport.