On Tuesday, May 9th, the former product manager at Coinbase, Ishan Wahi, was sentenced to 24 months in prison for using insider knowledge when trading cryptocurrencies. Wahi also shared the information used for insider trading with his brother, Nikhil, and a friend, Sameer Ramani. The sentence is slightly shorter than the 3 years the prosecutors initially sought.
Ishan Wahi Sentenced to 24 Months in Frist Crypto Insider Trading Case
According to a report from Tuesday, Ishan Wahi, Coinbase Global’s former product manager was sentenced to two years in prison. Wahi used his knowledge of which tokens would be listed on the exchange to acquire them beforehand and sell them after they jump in value after appearing on Coinbase.
It is alleged that Ishan, as well as his brother Nikhil and friend Sameer Ramani, gained approximately $1.5 million through insider trading. The former product manager pleaded guilty earlier this year, and his brother has already received a 10-month sentence in January. Ramani is reportedly still at large.
Wahl was operating his insider trading scheme between 2021 and 2022 and has, in large part, been uncovered thanks to the transparency offered by blockchain technology itself. Additionally, Coinbase announced changes to its listing process in April 2022 to help prevent any future instances of insider trading.
Major Crypto Insider Trading Cases Coming to A Close
The prosecutors reportedly consider this to be the first insider trading case involving cryptocurrencies. They have initially asked for a 3-year sentence to send a stronger message to others engaged in such activities. Additionally, the SEC allegations that the tokens Wahi was trading constitute unregistered securities are reportedly not yet resolved, though Coinbase itself remains adamant that it does not list securities.
Just weeks earlier, the first-ever insider trading case involving was concluded. On May 2nd, the former product manager at OpenSea, Nathaniel Chastain, was similarly convicted. He also misused his knowledge of which non-fungible tokens would be listed on the marketplace to buy them beforehand and sell them at a profit.
The cases against Wahi and Chastain are considered some of the highest-profile criminal cases involving digital assets. The last one, and arguably the biggest one at the time of writing, is the case against FTX’s former CEO Sam Bankman-Fried. SBF is expected to go to trial in October.
This article originally appeared on The Tokenist
Sponsored: Tips for Investing
A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.