First Ever Cryptocurrency Insider Trading Case
Fraud is fraud is fraud, whether it occurs on the blockchain or on Wall Street. And the Southern District of New York will continue to be relentless in bringing fraudsters to justice, wherever we may find them.
US Attorney Damian Williams
A former Coinbase product manager, Ishan Wahi is being charged on allegations of insider trading and wire fraud, along with two associates not linked to Coinbase. The Department of Justice (DOJ) released a statement earlier today regarding the three individuals charged.
Ishan Wahi worked at Coinbase as a product manager for asset listings. With that position, Wahi had access to the list of crypto assets to be listed as well as the timing of the public announcements and other confidential information. The DOJ alleges that Wahi tipped off his two associates (his brother and a friend) on future listings on at least 14 occasions, profiting approximately $1.5 million. In attempts to conceal their trades, the accused used accounts at centralized exchanges held in other peoples names before transferring gains into anonymous Ethereum wallets.
Coinbase lists new cryptocurrencies frequently nowadays, but in the beginning new additions were much more scarce. Many of the new listings would cause a 50% or higher pump in price for the digital asset. Many cryptos saw prices more than double after being newly listed on Coinbase.
