Ishan Wahi, a former product manager at the American crypto exchange Coinbase, pleaded guilty on Tuesday to involvement in insider trading.

Insider trading involves buying or selling an asset based on non-public information passed from company employees to outsiders. Shared data gives outsiders an advantage over other investors in the market as they trade their assets. In the United States, such an act is termed a criminal offense.

Ishan Wahi and His Accomplices Face Lawsuit

In July 2022, Ishan Wahi was accused of sharing non-public information with his brother, Nikhil Wahi, and a friend, Sameer Ramani. He informed the duo about 25 different crypto assets before they got listed on Coinbase. The information enabled the team to garner $1.5 million worth of illicit funds.

That same month, the United States Department of Justice (DOJ) charged the trio with the following criminal charges – wire fraud and insider trading. The agency termed the case the first insider trade court case involving cryptocurrency.

At a court hearing in September 2022, Nikhil Wahi pleaded guilty to wire fraud charges and participation in an insider trading scheme. At the time, Ishan Wahi pleaded not guilty. On January 10, Nikhil Wahi was sentenced to 10 months in prison. On the other hand, Ramani has gone into hiding since the matter came to light. He is yet to be caught or apprehended.

Ex-Coinbase Executive Faces Criminal Charges

In the latest court hearing, the former Coinbase manager pled guilty to two counts of conspiracy to commit wire fraud relating to insider trading. The crimes can keep Wahi in U.S. prison for as long as 20 years. 

“I knew that Sameer Ramani and Nikhil Wahi would use that information to make trading decisions. It was wrong to misappropriate and disseminate Coinbase’s property,” Wahi said in court.

U.S. District Judge Loretta A. Preska presided over the case in the Southern District Court of New York. The judge will prescribe a criminal sentence for Wahi on May 10, 2023.

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