Former manager of Coinbase arrested on crypto insider-trading charges. The former manager on Thursday morning was arrested in Seattle.
Former Manager of Coinbase Arrested on Crypto Insider-trading Charges
The department of justice announced on Thursday the arrest of a former manager of the cryptocurrency exchange platform named Coinbase. Ishan Wahi, 32, was arrested by the authorities on Thursday morning in Seattle on four charges that are all related to cryptocurrency wire fraud.
“Today’s charges are a further reminder that Web3 is not a law-free zone,” US attorney Damian Williams cited. “Fraud is fraud is fraud, whether it occurs on the Blockchain or on Wall Street.”
Officials of law enforcement also arrested the former managers’ 26 years old brother Nikhil Wahi on related charges on Thursday. And at this time, Sameer Ramani who is a friend of Wahi has been indicted by the authorities but has not been arrested.
How the Wire Fraud Crime Was Committed
The authorities have said that between times in June 2021 and April 2022, Ishan Wahi would send tips to his brother and Ramani whenever Cryptocurrencies were about to be listed on Coinbase. Ramani and Nikhil Wahi would then allegedly use anonymous cryptocurrency wallets to trade dozens of tokens, therefore, making close to $1.5 million in total profit.
What the FBI Has To Say about the Crime
“Although the allegations in this case relate to transactions made in a crypto exchange — rather than a more traditional financial market — they still constitute insider trading,” Michael J. Driscoll, FBI assistant director said. “Today’s action should demonstrate the FBI’s commitment to protecting the integrity of all financial markets — both ‘old’ and ‘new.”
The Type of Charges They Face
Ishan Wahi faces two counts of wire fraud conspiracy and two counts of wire fraud. His brother on the other hand faces one count of wire fraud conspiracy and wire fraud. Lastly, Ramani was indicted on one count of wire fraud conspiracy as well as one count of wire fraud.
