The SEC collaborated with Coinbase’s former product manager to investigate insider trading.
The SEC has settled insider trading allegations involving former Coinbase product manager Ishan Wahi and his brother Nikhil Wahi. The two brothers were arrested last year on charges related to an electronic fraud conspiracy and an insider trading scheme.
SEC Reaches Agreement on Insider Trading, Former Product Manager of Coinbase
The SEC has come to an end in insider trading allegations against Ishan Wahi, a former product manager at Coinbase, and his brother Nikhil Wahi. The two brothers were arrested last year on charges related to an electronic fraud conspiracy and an insider trading scheme. That same day, the SEC also brought charges related to insider trading. In its announcement, the SEC stated that the brothers agreed to distribute their earnings and pay interest.
Ishan Wahi is currently serving a prison sentence of 2 years and Nikhil Wahi for 10 months. The two admitted to the Justice Department’s accusations. The SEC said the fines the brothers received met the settlement of the civil lawsuit and would not seek further penalties.
SEC Executive Director Gurbir Grewal said the allegations were “not new”, noting that Ishan and Nikhil Wahi were buying and selling securities based on insider information and that it was pure insider trading. He stressed that the SEC is not exempt from the ban on insider trading in crypto-asset securities.
It was stated that this settlement marked the end of the lawsuit filed by the SEC to answer the question of whether the nine cryptocurrencies considered securities are actually securities. While the SEC argues that almost all cryptocurrencies are securities, the crypto industry claims this is not true and wants the SEC to issue official guidance and determine how cryptocurrencies should be considered securities.
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