The Securities and Exchange Commission (SEC) accused a former Coinbase (NASDAQ:COIN) executive and two colleagues with insider trading on Thursday.
Former Coinbase product manager Ishan Wahi, his brother, and a buddy have all been charged. The trio allegedly transacted ahead of many announcements of crypto assets that would be accessible for trade on the Coinbase platform.
The SEC claims that while working at Coinbase, Ishan Wahi assisted in the coordination of public listing announcements, including which crypto assets or tokens would be made accessible for trading on the platform – information that was considered secret at the time.
According to the SEC, Ishan frequently conveyed the schedule and content of anticipated listing announcements to his brother, Nikhil Wahi, and his friend, Sameer Ramani, from June 2021 through at least April 2022.
The announcements frequently resulted in a considerable rise in the part’s price. According to the SEC, the three reportedly purchased at least 25 cryptoassets, at least nine of which were securities, and then sold them for a profit shortly after the announcements, earning more than $1.1 million.
“Defendants have collectively earned more than $1.1 million in illegal profits in nearly a year by engaging in alleged insider trading that repeatedly used material, nonpublic information to trade prior to Coinbase listing announcements,”
said Carolyn Welshhans, acting head of the Enforcement Division’s Crypto Assets and Cyber Unit.
