Ex-Coinbase Employee First Charged With Crypto Industry Insider Trading | United States and world
A the former Coinbase employee and two others have been charged with an insider trading scheme. Prosecutors say this is the first charge related to insider trading involving cryptocurrency.
Former employee Ishan Wahi, 32, allegedly told his brother Nikhil Wahi, 26, and business partner Sameer Ramani, 33, at least 14 times of crypto assets Coinbase was going to list before the company told him. announces publicly, according to a lawsuit filed in U.S. District Court for the Western District of Washington.
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“Today’s charges are yet another reminder that Web3 is not a lawless zone. Last month, I announced the first-ever case of insider trading involving NFTs, and today , I am announcing the first-ever case of insider trading involving cryptocurrency markets. Our message with these charges is clear: fraud is fraud is fraud, whether it happens on the blockchain or on Wall Street “said U.S. Attorney Damian Williams in a statement.
Ishan Wahi has been charged with two counts of wire fraud conspiracy and two counts of wire fraud. Nikhil Wahi and Ramani have each been charged with one count of wire fraud conspiracy and one count of wire fraud. Authorities say each charge carries a maximum sentence of 20 years per count.
Prosecutors stressed the importance of prosecuting insider trading in “more traditional financial markets” and in emerging financial markets.
“While the allegations in this case relate to transactions made on a crypto exchange — rather than a more traditional financial market — they still constitute insider trading,” FBI Deputy Director Michael Driscoll said in a statement. .
Coinbase said it cooperated with the Justice Department in the investigation and conducted its own internal investigation into Wahi, concluding that he misused his knowledge gained at the company.
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“Coinbase takes allegations of inappropriate use of company information very seriously, as demonstrated by our prompt investigation of this matter. Again, we have zero tolerance for this type of misconduct and will not hesitate to take action against any employee when we discover wrongdoing.” the company said in a statement Thursday.
Prosecutors also said Ishan Wahi tried to flee the country in May but was caught by law enforcement before he could board a plane to India. Ishan Wahi and Nikhil Wahi were arrested Thursday in Seattle, Washington, while Ramani remains at large.
Original location: Former Coinbase employee is first charged with insider trading in the crypto industry
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