US authorities have sentenced a former Coinbase product manager to two years in prison for insider trading, according to Reuters.
On May 9, 2023, prosecutors sentenced Ishan Wahi for participating in a scheme involving “massive abuse” of Coinbase trust. article I got it.
background of the incident
In January, Ishan Wahi’s brother, Nikhil Wahi, was sentenced to 10 months in prison for the same charges of trading on Coinbase’s confidential information. Samer Ramani admitted that it was his brother Ishan Wahi who leaked the information.
According to information leaked by Ishan Wahi, Ramani and Nikhil Wahi used anonymous wallets and made over $1 million in transactions between July 2021 and May 2022. Ishan Wahi was arrested along with his brother Nikhil Wahi in January. However, Ishan Wahi pleaded not guilty and Ramani was outside the US borders.
In February, Ishan Wahi filed a lawsuit asking US authorities to drop the charges against him. Wahhi argued that the Securities and Exchange Commission (SEC) does not have legal authority to classify tokens as securities. Wahi’s attorneys argued that the assets and asset owners involved in the lawsuit were not part of a “general corporation” because tokens are not considered investment contracts. Therefore, no insider trading charges were applied.
court decision
Wahhi said he “made a big mistake” that will last the rest of his life, according to Reuters. Instead, it was a series of hints scattered over 10 months.
Wahhi asked the court for a verdict that was no longer his brother’s. At his brother Nikhil Wahi’s hearing, the prosecutor recommended that Nikhil Wahi be sentenced to at least his ten months in prison. Nikhil Wahi’s lawyers have managed to come to a minimal settlement by claiming that the 26-year-old’s Wahi’s primary motive was to pay off his college debt and that he had never been arrested before. Succeeded.
In the case of Ishan Wahi, prosecutors recommended that he be detained for no less than three years. Ishan Wahi noted that other cryptocurrency-related insider trading cases typically result in little or no prison sentence. However, the court sentenced him to two years in prison as a civil officer who used deception for financial gain.
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