Ex-Coinbase manager’s brother sentenced to 10 months in insider trading case


The brother of a former Coinbase product supervisor, Nikhil Wahi, has been sentenced to 10 months in jail for wire fraud conspiracy fees, in what’s believed to be the primary insider trading case involving cryptocurrency. 

As reported by Reuters, Nikhil Wahi pleaded responsible in September to initiating trades primarily based on confidential data obtained from his brother, Ishan Wahi, who was a former Coinbase product supervisor.

Nikhil Wahi admitted to trading with the usage of inside data obtained from Coinbase. According to the federal prosecutors in Manhattan, Ishan Wahi, a former product supervisor, had shared confidential data relating to new digital property that Coinbase was planning to add to its trading platform, with each his brother and their buddy Sameer Ramani.

The U.S. prosecutors really useful a jail sentence of between 10 to 16 months for Nikhil Wahi, citing the truth that he had made virtually $900,000 in earnings from his unlawful actions. However, his protection attorneys instructed a special consequence, arguing that Nikhil’s motivation for committing the crime was to repay his mother and father for paying for his school training and that he had no prior felony file. 

Related: Coinbase to reduce one other 20% of its workforce in the second wave of layoffs

The sentencing of Nikhil Wahi is happening amid elevated scrutiny from U.S. prosecutors and regulators towards cryptocurrency firms and their executives. 

On Jan 4, Coinbase reached an settlement with the New York State Department of Financial Services (NYDFS) following an investigation into the corporate’s compliance program. According to NYDFS, Coinbase has agreed to pay a $50 million positive in response to violations of New York’s monetary providers and banking legal guidelines and likewise to make investments $50 million to right its compliance program. The investigation revealed that Coinbase had varied deficiencies associated to anti-money laundering necessities and points with its course of for onboarding customers and monitoring transactions.

Coinbase’s woes appear to proceed, as on Jan 10, Coinbase CEO Brian Armstrong formally introduced that Coinbase will reduce 950 jobs as a part of the corporate’s measures to cut back the agency’s working prices by round 25% amid the continued crypto winter.