Former Coinbase Insider Pleads Guilty To Wire Fraud-related Criminal Charges

Key Points:

• Tuesday morning, Ishan Wahi a former Coinbase product manager, pled guilty to wire fraud-related felony counts.
• He pled guilty to two counts of conspiracy to conduct wire fraud, with sentencing scheduled for May 10.

On Tuesday, Ishan Wahi, a former Coinbase product manager, pled guilty to wire fraud charges in a criminal prosecution filed against him.

In July, the Justice Department indicted Ishan Wahi, along with his brother and a friend, in connection with an insider trading operation to pre-empt future token listings on Coinbase.

Wahi pled guilty to two counts of conspiracy to conduct wire fraud, with sentencing scheduled for May 10. Under sentencing standards, he faces up to 40 years in jail, but due to his cooperation, he is likely to receive a less severe term.

A legal debate in separate civil charges brought by the Securities and Exchange Commission about whether the nine tokens in question are securities may be rendered moot by the guilty plea.

Wahi’s attorneys submitted a motion to dismiss the case Wednesday night. According to the agency, Wahi tipped off his buddy and brother on which tokens will be listed for trading on Coinbase and made over $1 million in the process. That lawsuit is still ongoing, pending the outcome of the request to dismiss.

Ishan Wahi – a former Coinbase product manager – admitted in court today that he tipped others regarding Coinbase’s planned token listings so that they could trade in crypto assets for a profit.  Wahi is the first insider to admit guilt in an insider trading case involving the cryptocurrency markets.  Whether it occurs in the equity markets or the crypto markets, stealing confidential business information for your own personal profit or the profit of others is a serious federal crime.  The Southern District of New York has decades of experience pursuing insider trading cases, and we will continue to use our expertise to prosecute this crime no matter what form it takes and where it occurs.

U.S. Attorney Damian Williams said

Coinbase has conducted its own investigation into Wahi’s activities before the criminal and civil prosecutions, and it is not accused of wrongdoing.

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