Former Coinbase Employee Pleads Not Guilty to Insider Trading
Bail for the former project manager and his brother has been set at $1 million USD each.
With the regulatory heat turning up in the crypto space, one particular case has been in the spotlight. The case of alleged insider trading against Coinbase’s former product manager Ishan Wahi, his brother Nikhil, and friend Sameer Raman. Both Ishan and his brother have chosen to enter a non-guilty plea, while Raman is currently believed to be at large.
Coinbase identified these individuals and provided information about them to the DOJ. Coinbase proactively monitors for illegal activity and investigates alleged misconduct.
— Coinbase (@coinbase) July 22, 2022
The former employee is alleged to have participated in insider trading and fraud during his time with the platform — sharing confidential information with his brother and friend in order to manipulate and take advantage of the market. The three are alleged to have generated at least $1.5 million USD in ill-gotten gains according to prosecutors.
In the most recent update on the case, Wednesday, August 3, the Wahi brothers plead not guilty during an arraignment in the Manhattan federal court before U.S. District Judge Loretta Preska.
The case has also sparked a broader conversation on regulatory practices, who should be running the show, and how assets should be classified. Both the DOJ and SEC have pursued different charges in this same case, with the SEC making a distinction that several of the assets on Coinbase are by definition securities and should be treated as such — an assertion the platform has said it strongly disagrees with.
Due to these same security labeling by the SEC, Binance has since delisted the AMP token from its platform. The jury is still out on a clear definition of digital assets and who will be the primary overseer.
As for the case, bail for the Whai brothers has been set at $1 million USD each, with the next court appearance to take place in the coming months.