Coinbase’s Former Manager Admits to Crypto Insider Trading Charges

A former employee from Coinbase has already admitted his hands in a cryptocurrency insider trading scheme which he engaged in while still with the trading firm. Ishan Wahi used his position to help his brother and friend to gain advances when buying cryptocurrency, and the trio was able to generate more than $1.5 million in their scheme.

Sharing insider trading secrets is a crime, as it puts an unfair advantage on those familiar with the happenings against those who buy it without intricate market knowledge from a company.

Coinbase's Former Manager Admits to Crypto Insider Trading Charges

According to Reuters' report, Wahi already admitted to the insider trading charges against him in US courts, with the incident happening on more than 14 occasions with the former employee. His actions were done during his tenure at Coinbase, a famous crypto trading firm worldwide, a company from Bryan Armstrong.

Wahi leveraged his position to share insider trading information with his brother, Nikhil Wahi, and friend, Sammer Ramani.

Wahi is now facing 36 to 47 months of prison for his crimes, and his sentencing will happen in May. On the other hand, his brother, Nikhil Wahi, also admitted to wire conspiracy fraud charges against his name last September 2022 and is now facing ten months in prison.

Wahi, Accomplices Generated More Than $1.5 Million in Scheme

Engadget reported that the Wahi brothers and their co-conspirator, Ramani, have gained more than $1.5 million in ill-gotten wealth from the insider secrets the ex-Coinbase employee obtained.

Their scheme gave them an upper hand on which coins to purchase, particularly those that Coinbase would add to their list, resulting in a higher value and increasing their investments.

Insider Trading is a Massive Crime in the Country

There are various cases of insider trading, and it spans different industries present in the world. One of the main reasons is to gain an edge over the competition or the market and generate more money in the end. Since cryptocurrency started, there have been several insider trading charges against executives and part of the industry, with one case on OpenSea.

This gives the insider an unfair advantage, and it does not matter who they share it with, whether for personal gain or their friends and family.

Of course, this is not isolated in the cryptocurrency industry alone, as there is a significant one against a Big Tech company, from a Meta investor, who accused Mark Zuckerberg of this illicit action. There was also a lawsuit against the billionaire and CEO of the company, who leveraged his position for gains.

The cryptocurrency industry is full of information and data that may help analyze the market to find the best and most profitable coin to invest in and grow their money to great heights. However, it is still unacceptable to get help from people within the trading firms, as Wahi exhibited in the past, using his position as a manager on Coinbase to get ahead.