Former Coinbase Staff Arrested by U.S Officials Over Insider Trading

Former Coinbase Staff Arrested by U.S Officials Over Insider Trading

  • Traded cryptocurrencies making over $1 million in profits using illicit information.
  • Accused shared info with his brother Nikhil Wahi and a friend, Sameer Ramini.

Last week, the SEC and prosecutors in the Southern District of New York arrested an ex-product manager for a major crypto exchange. According to Bloomberg, Ishan Wahi, a former product manager at Coinbase, reportedly revealed private information about the company’s token listings to his brother Nikhil Wahi and a friend, Sameer Ramini.

When Wahi advised his collaborators to make purchases for the tokens discussed, he allegedly gave unlawful financial advice and leaked insider knowledge. On the other hand, the exchange operator was not a focus of the investigation and will not face prosecution, according to Bloomberg’s insider sources. The authorities are also looking into Wahi’s brother and friend, who allegedly used illicit financial advice to trade cryptocurrencies between June 2021 and April 2022, making over $1 million in profits.

XRP Vs Ethereum

On the one hand, the SEC had Wahi in custody for allegedly disclosing private information about tokens. In contrast, in the contentious XRP litigation, William Hinman, the former SEC Director of Corporate Finance, and other agency employees have been accused of unlawful market manipulation to enable Ether and Bitcoin’s price to rise while crushing XRP’s growth with a suit.

Last year, Empower Oversight filed a FOIA lawsuit against the SEC about Hinman’s 2018 statement, which established that Ether was not a security, pushing the cryptocurrency’s price through the stratosphere.

Corruption watchdog argued that Hinman had a Conflict of Interest, further demanding the SEC to do a complete examination to see if Hinman’s prejudice led to SEC’s enforcement actions that preferentially targeted specific cryptocurrencies (XRP) while allowing others a free pass (Ether).

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