The SEC convicted three people of insider trading on Coinbase. Employees, including a manager, were arrested. According to reports, they have made illegal profits of $1.1 million on 25 coins.
Insider trading Coinbase executive arrested
The SEC found that a former Coinbase executive had traded prior to multiple announcements. According to the SEC’s complaint, exchange employee Ishan Wahi made planned transactions with his brother Nikhil Wahi and friend Sameer Ramani prior to the Coinbase announcements. Coinbase executive Ishan Wahi was arrested after the SEC’s complaint. The US Department of Justice said Ishan and Nikhil Wahi were arrested Friday morning in Seattle. Ramani was also in custody today and was later released.
The complaint stated that between June 2021 and April 2022, Wahi misused confidential Coinbase information. The three defendants used anonymous Ethereum wallets to acquire coins shortly before the announcements.
They traded on at least 25 cryptocurrencies
In a shocking statement, the SEC estimated they made $1.1 million in illegal profits from insider trading. The complaint alleged that the perpetrators purchased at least 25 coins to take advantage of the announcements. A manager and his relatives sold the coins at a profit shortly after the Coinbase announcement.
SEC places 9 altcoins in “security” status as a result of lawsuit
As you follow on Kriptokoin.com, the SEC has decided on securities for 9 altcoins in a petition for the upstream lawsuit. An SEC official says the investigation into the insider trading case is ongoing.
Caroline Pham of the CFTC called the conspiracy “a striking example of regulation through practice” on Twitter.
Read my statement on #SEC v. Wahi, regulation by enforcement & #CFTC authority #crypto #digitalassets #DAO pic.twitter.com/xbHvyshx8l
— Caroline D. Pham (@CarolineDPham) July 21, 2022
However, the exchange says that none of the cryptocurrencies it lists are securities. The clarifications came from a blog post today.
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