Ex Coinbase Manager, Two Others Charged With Crypto Insider Trading

July 22, 2022

Reading Time: 3 minutes

Ishan Wahi, a former product manager at Coinbase Global Inc., his brother, Nikhil Wahi, and Ishan’s friend Sameer Ramani, have been charged with the first ever crypto insider trading tipping scheme.

Damian Williams, the United States Attorney for the Southern District of New York, and Michael J. Driscoll, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”) disclosed the information on Thursday.

They alleged that the three were involved in “a wired fraud and wire fraud in connection with a scheme to commit insider trading in cryptocurrency assets by using confidential Coinbase information about which crypto assets were scheduled to be listed on Coinbase’s exchanges.”

“Today’s charges are a further reminder that Web3 is not a law-free zone.  Just last month, I announced the first ever insider trading case involving NFTs, and today I announce the first ever insider trading case involving cryptocurrency markets.  Our message with these charges is clear: fraud is fraud, whether it occurs on the blockchain or on Wall Street.  And the Southern District of New York will continue to be relentless in bringing fraudsters to justice, wherever we may find them,” said US Attorney Darmian Williams.

The FBI Assistant Director Michael J. Driscoll also expressed the FBI’s commitment to the protection of the integrity of all financial markets, regardless of the era.

According to Driscoll, “Although the allegations in this case relate to transactions made in a crypto exchange – rather than a more traditional financial market – they still constitute insider trading.  As alleged, the defendants made illegal trades in at least 25 different crypto assets and realized ill-gotten gains totaling approximately $1.5 million.  Today’s action should demonstrate the FBI’s commitment to protecting the integrity of all financial markets – both ‘old’ and ‘new.’” 

In the release by the Department of Justice, Ishan Wahi in around October 2020 worked at Coinbase Global Inc. as a product manager which he was assigned to the crypto exchange’s listing team, making confidential information about the coins to be listed accessible to him. 

However, on a minimum of 14 occasions between June 2021 to April 2022, Wahi with this information tipped either his brother Nikhil Wahi or his friend,  Sameer Ramani, for them to place profitable trades on these coins before the listing by the Coinbase.

However, it is noteworthy that you benefit from our ParadiseFamilyVIP discount code before it expires, use PRO20% for your 20% discount now; you will get the information and education from the Paradise Team to make you stand out from every other trader, we make daily analyses of Bitcoin, Ethereum, and other trending altcoins on Binance (Spot&Futures), Kucoin, and Bybit exchanges, make necessary adjustments on our positions to conform with the recent market situation. 

Some of the ideologies we follow in our ParadiseFamilyVIP are:

  • Quality above quantity 
  • Protection of the capital is more important than trying to desperately make money
  • Increasing our capital step by step 
  • Treating trading as a business, not as a casino. 

All our trades come with the best Risk/Reward; before we post a signal, we do a proper technical and fundamental analysis of the coin we are about to open position on. 

We also do a proper sentiment analysis of the whole market. The market is changing all the time, so we need to analyze the entire market situation every day. In the signal, we are sharing everything easy to follow; we share trades with always only one buy entry, so it is easier for our members to follow the signal and also so we are entering every Trade with the same position size, which is important if you want to be long term consistent in making a profit.

Click here for reviews from our clients.

Coinbase’s Response

Coinbase through its Twitter account said that it identified these individuals and tipped the Department of Justice about them, the exchange says that it “proactively monitors illegal activity and investigates alleged misconduct.”

Also, in a blog post, Brian Armstrong said that the SEC’s move to charge these three with securities fraud is an unfortunate distraction, he furthered that Coinbase has filed complaints about them to the Justice Department.

“Coinbase takes allegations of improper use of company information very seriously, as demonstrated by our rapid investigation of this matter. Again, we have zero tolerance for this kind of misconduct and will not hesitate to take action against any employee when we find wrongdoing,” said Brian Armstrong.

Join our telegram channels where we share our FREE updates and analysis on coins like BTC, ETH, and other trending altcoins. We also share our FREE secret insights. And also FREE market updates.

0 0 votes
Article Rating
Subscribe
Notify of
guest

0 Comments
Inline Feedbacks
View all comments

Start earning profit

We aim to provide our ParadiseMembers with as much information as we can to ensure to maximize long-term profit, no matter if we are in a bullish or bearish market. We are a large scale cryptocurrency community providing you with access to some of the most exclusive life changing cryptocurrency signals, analysis, guidance and much more

Trade crypto like a pro

Related Posts…