Ex-Coinbase Manager pleads not guilty to insider trading charges

Former Coinbase product manager Ishan Wahi has pleaded not guilty to fraud charges leveled against him by Former U.S. Department of Justice Manhattan Federal Court August 3.

Ishan was arraigned in court last month on charges of insider trading.He was said to have leaked information about cryptocurrencies listed on Coinbase to his brother Nikhil and his friend Sameer Ramani.

The illegal trade is said to have made about $1.5 million in profits between June 2021 and April 2022.

Prosecutors noted that the defendants used an Ethereum-based wallet to acquire assets before going public. The assets were sold after the price increased after going public.

Confidentiality of transaction information

Ishan’s attorney, David Miller, argued in the defense: The information his client allegedly shared was no longer confidential.

Prosecutor Noah Solowiejczyk refuted this argument, noting that the listing process still ensures that the information is private. He said the nature of the insider trading charges still persisted, similar to previous wire fraud cases, and should not be dismissed.

Through his lawyers, Ishan claimed that the United States does not have regulations on insider trading of cryptocurrencies. For this reason, the defendants have moved to dismiss the action. The two brothers were each granted $1 million bail, but this request was not considered.

The Court has scheduled its next hearing for March 22, 2023.

Ishan, his brother Nikhil, and friend Sameer are still suing the SEC for allegations of securities trading. The SEC reported that 9 out of 25 crypto assets involved in crime were securities.

SEC Investigating Coinbase

Following allegations that Wahi was trading securities on Coinbase, the defense exchange has distanced itself from listing or trading the securities.this claimed Its rigorous listing process has been scrutinized by the SEC, helping to keep securities off the platform.

Coinbase Chief Legal Officer Paul Grewal reiterated in a tweet:

Again, we believe our rigorous scrutiny process (a process already reviewed by the SEC) keeps securities away from our platform, and we look forward to engaging with them on this issue. to review: https://t.co/SaacvrZEiU

paulgrewal.eth (@iampaulgrewal) July 26, 2022

Despite Coinbase’s stance, the SEC has launched an investigation into the securities listing. The SEC is investigating whether Americans were allowed to trade unregistered security assets on the Coinbase exchange platform.