Former Coinbase Manager Settles SEC Insider Trading Charges31. Mai 2023
• Former Coinbase manager Ishan Wahi and his brother Nikhil Wahi have agreed to settle SEC insider trading charges.
• The SEC alleged that Ishan had tipped off his brother about which crypto would be available on Coinbase, helping him profit from the rise in value.
• The settlement does not require any additional penalties beyond those already paid for a separate criminal case.
SEC Insider Trading Charges
The US Securities and Exchange Commission (SEC) has charged former Coinbase manager Ishan Wahi and his brother Nikhil with insider trading. The complaint revolved around nine cryptocurrencies that the SEC believed to be securities. It alleged that Ishan had tipped off his brother about which crypto would be available on Coinbase, helping him profit from the rise in value.
Ishan and Nikhil Wahi have agreed to settle the SEC’s charges without denying the allegations against them. Although the legal status of these nine cryptocurrencies remains unclear, Rodrigo Seira of Paradigm noted that this settlement “does not require Wahi to pay any additional penalties (in addition to those due for separate criminal case).”
Ishan and Nikhil pleaded guilty in a parallel criminal case brought by the Department of Justice (DOJ). As part of their plea deal, Ishan was sentenced to two years while Nikhil received a 10-month sentence. Additionally, both brothers were required to pay restitution fees from their illegal proceeds as well as fines imposed by US courts.
Coinbase Under Scrutiny
Coinbase is also under investigation by the SEC after it sent a Wells notice indicating its intention to recommend formal charges against the exchange. It remains unclear whether or not these charges will move forward given recent events.