Former Coinbase Product Manager Arrested For Inside Trading

US authorities have arrested Ishan Wahi (former Chief Product Officer of Coinbase) on charges of being involved in insider trading.

Coinbase Gets Into Insider Trading

According to the information page of the New York Southern District Attorney’s office, three individuals have been accused of being involved in many insider trading activities in cryptocurrencies, especially taking advantage of confidential information about the token listing process Coinbase for profit.

These three individuals include:

• ISHAN WAHI
• NIKHIL WAHI
• SAMEER RAMANI

In particular, Ishan Wahi used to work as a product manager at cryptocurrency exchange Coinbase. Two subjects, Ishan and Nikhil Wahi, were arrested on July 21 in Seattle, Washington and will appear in court in the Western District Court of Washington.

Thanks to the confidential information obtained, a total of 14 times (from June 2021 to April 2022), Ishan Wahi asked his brother Nikhil Wahi and a friend Ramani to buy large quantities of tokens to be listed on Coinbase before the exchange made the information public.

Notably, on May 11, 2022, Coinbase’s Security Directorate sent an email requesting Ishan to be present for an explanation on May 16, 2022. Ishan accepted the request from the above email, but a day before (May 15), Ishan booked a one-way flight ticket to India and informed two of his accomplices about the summons email of Ishan board of manager.

However, just before preparing to board the plane to leave the US, Ishan was detained to serve the investigation and finally the information that this former director was arrested on July 21.

This incident was previously discovered by Cobie (a popular KOL on Twitter), when he posted information about a series of suspicious on-chain transactions before Coinbase announced the listing of cryptocurrencies. Coinbase CEO Brian Armstrong later announced that he would open an investigation and bring the individual responsible to the law.

This is the second NFT insider transaction after the Opensea incident. Earlier, US officials also announced that there will be severe penalties for illegal activities related to cryptocurrencies.

This move is expected to establish a clearer and more specific regulatory framework, making the development of blockchain technology healthier in the eyes of many investors.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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