charged for an NFT insider trading scheme

COINBASE EX-MANAGER

COINBASE EX-MANAGER

According to a CNBC report, an ex-manager of Coinbase and 2 of his companions were charged for committing an NFT insider trading scheme worth $1.5M in crypto assets by the U.S. Attorney’s Office for the Southern District of New York and the Securities and Exchange Commission.

Ishan Wahi, ex-product manager at Coinbase, and his two companions, Nikhil Wahi and Sameer Ramani were also charged for wire fraud conspiracy and wire fraud in connection.

According to the authorities, the manager benefited from access to Coinbase’s confidential information about crypto assets to be listed on the Coinbase exchange and shared it with his brother Nikhil and friend Ramani to profit via insider trading.

The SEC also claimed that around 9 of the crypto assets were “securities” but Coinbase’s Chief Legal Officer Paul Grewal denied the allegation by saying, 

“Coinbase does not list securities on its platform. Period.”

SEC also shared that the  ex-manager Ishan Wahi attempted to flee to India but the U.S. authorities were quick enough to arrest and charge him of his crimes. Nikhil was also arrested but Ramani is still on the run.

“Today’s charges are a further reminder that Web3 is not a law-free zone. Our message with these charges is clear: fraud is fraud is fraud, whether it occurs on the blockchain or on Wall Street,” U.S. Attorney Damian Williams said, “And the Southern District of New York will continue to be relentless in bringing fraudsters to justice, wherever we may find them.”