The United States Securities and Exchange Commission is making progress in settling the case against a former Coinbase Global product manager accused of insider trading.
In a brief filed April 3 with the US District Court for the Western District of Washington, the SEC said it had reached “an agreement in principle” with Ishan Wahi. The former Coinbase employee — along with his brother Nikhil Wahi and his associate Sameer Ramani — allegedly used sensitive information he obtained from the cryptocurrency exchange to profit from new token listings, totaling more than $1 million.
“Any settlement recommended by SEC staff must be reviewed within the SEC and approved by the SEC Commissioners before it can be submitted to the Court for approval, a process that can take several weeks,” the filing said. .
Authorities detained Ishan and Nikhil in July 2022, apparently while trying to fly to India, and both brothers later pleaded guilty to parallel criminal charges for insider trading. According to the April 3 filing, the SEC had held “good faith discussions” with Nikhil, who was sentenced to 10 months in prison in January.
The case against the Wahi brothers was one of the first involving insider trading at a major American cryptocurrency exchange before platforms like FTX and Celsius filed for bankruptcy. The original complaint alleged that Ishan had access to cryptocurrency trading information on Coinbase-controlled exchanges in his position as head of product between August 2021 and May 2022. He then passed that information on to either his brother or Ramami to invest in the tokens before the Coinbase listing was expected to cause a jump in price.
Notable in the context of the SEC’s crackdown on cryptocurrencies, the case saw the regulator label nine of the tokens as “crypto-asset securities” that fall under its purview. Later in March, the SEC issued a Wells Notice—warning of potential enforcement action—to Coinbase itself. The exchange’s chief legal officer, Paul Grewal, said the notification came despite numerous conversations with SEC representatives.
Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information presented here should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the entire amount invested may be lost. The services or products offered are not directed or accessible to investors in Spain.