Coinbase Claims $470,000 Expenses Related To Insider Trading Lawsuit

Key Points:

• Coinbase has requested $470,000 in damages, understood to be the cost of the exchange’s cooperation with the US Department of Justice and the SEC in an insider trading investigation.
• The settlement fee includes 5 subpoenas and 65 requests for documents and information. That left out $60,000 in wages for employees working with the DOJ.
• The largest exchange in the US has recently been constantly entangled in legal disputes in the context of a banking crisis and regulatory tightening.

According to Blockworks, Coinbase has requested $470,000 in damages, known to be the cost of the exchange’s cooperation with the US Department of Justice(DOJ) and the SEC in their investigation of former Coinbase employee Ishan Wahi and his brother Nikhil Wahi.

The pair were charged with insider trading and wire fraud. According to the SEC petition, Wahi and his associates illegally profited $1.1 million by mining sensitive information about crypto listing announcements while he worked at Coinbase. Ishan Wahi faces a sentence on May 9, and Nikhil was sentenced to 10 months in January.

Victims are eligible for compensation under the Compulsory Victims Compensation Act for expenses and loss of income resulting from their participation in specific criminal investigations, including wire fraud.

Reportedly, out of the $470,000 in compensation, Coinbase requested. More than $400,000 will include “five grand jury subpoenas served on Coinbase totaling 65 requests (including appendages) for documents and information” from the DOJ investigation. In addition, the exchange requested $60,000 in lost wages for employees who had to work with the DOJ’s Department of Security and Special Investigations.

This comes amid Coinbase’s ongoing dispute with the SEC. The same US-based regulator sent the exchange a Wells notice last week, a letter indicating the possibility of a lawsuit for violating securities laws. Considering that the allegations are the first significant insider trading case involving cryptocurrencies and include nine Coinbase-named tokens that the SEC believes unregistered securities, a possible settlement has a far-reaching impact on the entire digital asset market.

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