10 months in prison for insider trading in cryptocurrencies

NEW YORK — The brother of a former Coinbase product manager was sentenced Tuesday to 10 months in prison in what federal prosecutors have described as the first cryptocurrency insider trading case.

Nikhil Wahi, 27, of Seattle, was convicted in Manhattan federal court after pleading guilty to a count of conspiracy to commit wire fraud in September.

Prosecutors said that around October 2020, Nikhil Wahi began receiving confidential tips from his brother Ishan Wahi – then a product manager at Coinbase Global Inc., one of the world’s largest cryptocurrency exchanges – and used the information to sell crypto assets for profit .

Both the Wahi brothers and a friend, Sameer Ramani, were indicted in July in what US Attorney Damian Williams has described as the government’s first insider trading case involving cryptocurrency markets.

Willams said Tuesday’s statement “makes it clear that the cryptocurrency markets are not lawless. There are real consequences for illegal insider trading, wherever and whenever it occurs.”

In addition to the jail term, Nikhil Wahi was fined $892,500.

Ishan Wahi has pleaded not guilty to the charges against him and Ramani is at large.

#months #prison #insider #trading #cryptocurrencies

Leave a Reply

Your email address will not be published. Required fields are marked *