Today, former Coinbase manager, Ishan Wahi, pled guilty in an insider trading case. This is the first crypto insider trading case in the United States.
The case was brought against Wahi after he was accused of using his position as a manager to engage in insider trading of cryptocurrencies. He was charged with one count of wire fraud and one count of securities fraud.
According to court documents, Wahi used his knowledge of upcoming Coinbase announcements to purchase cryptocurrencies in advance of the announcements. He then sold the cryptocurrencies after the announcements were made, resulting in a profit of over $50,000.
The U.S. Department of Justice stated that Wahi’s actions were “a clear violation of the trust placed in him by his employer and the investing public.”
Wahi has agreed to pay back the $50,000 in profits and has accepted a plea deal that will result in a sentence of up to five years in prison.
The case has been closely watched by the cryptocurrency community and is seen as a warning to others who may be tempted to engage in insider trading. The case is also a reminder of the importance of regulation in the cryptocurrency market.
This story is developing, and for the latest updates, please check out the full coverage on USNN.