The SEC announced that former Coinbase product manager Ishan Wahi and his brother agreed to settle charges against them that they engaged in insider trading.
On Tuesday, the US Securities and Exchange Commission (SEC) announced that Ishan Wahi, a former Coinbase Global product manager, and his brother, Nikhil Wahi, agreed to settle charges that they engaged in insider trading relating to at least nine crypto asset securities.
The securities watchdog said the Wahi brothers agreed to settle civil charges that they engaged in a scheme to trade ahead of multiple announcements relating to at least nine crypto asset securities, which would be made available on Coinbase’s platform.
Ishan Wahi was arrested in 2022 and charged with insider trading after it emerged that he was feeding his brother Nikhil, and another individual, with information about crypto assets to be listed on Coinbase.
Authorities investigating the matter said Wahi’s brother and a fellow conspirator, Sameer Ramani, made over $1 million between June 2021 and April 2022 with the information provided by Ishan Wahi.
Ishan Wahi was sentenced to two years in prison after pleading guilty to charges of conspiracy to commit wire fraud.
Nikhil Wahi was sentenced to 10 months in prison in January and was ordered to pay a fine of $892,500 after pleading guilty to one count of conspiracy to commit wire fraud.
SEC Argues Digital Assets Should Fall Under Its OversightThe SEC has grown increasingly active in policy in the crypto industry, filing numerous lawsuits against several major crypto-related firms since the start of 2023. Reuters reports that in the lawsuits, the agency has argued that many digital assets are securities and fall under its oversight, including the case against the Wahi brothers.
During pleading to the criminal charges, Ishan Wahi stated that he did not believe any of the tokens in question were securities.
Coinbase is not a party to the SEC allegations against the Wahi brothers, but the firm filed an amicus brief supporting the Wahi brother’s motion to dismiss the SEC’s case.
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