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SEC Reaches Settlement With Former Coinbase Manager on Insider Trading Case: Details

Wed, 05/31/2023 - 08:22
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Godfrey Benjamin
Insider trading case involving Ishan Wahi and Nikhil Wahi has finally been settled
SEC Reaches Settlement With Former Coinbase Manager on Insider Trading Case: Details
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The United States Securities and Exchange Commission (SEC) has announced it has reached a final settlement with former Coinbase Product Manager Ishan Wahi in one of the first landmark insider trading cases in the U.S.

Terms of settlement

According to the market regulator, Ishan and his brother Nikhil Wahi have both pled guilty to the charges and have agreed to refund the profits they raked in through unwholesome trading practices. As charged, the duo, alongside their friend Sameer Ramani, traded as many as 25 digital currencies based on the prior knowledge of their listing, per Ishan's role in the exchange.

Of these assets traded, the SEC alleged that about nine can be labeled as unregistered securities, making the entire case solidify its push to crack down on Coinbase. Per the terms of the settlement, both Wahi brothers will be paying disgorgement and all prejudgment interest accrued in the case.

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As revealed earlier, the SEC also confirmed that Ishan has a 24-month jail term, while his brother Nikhil will spend 10 months in jail. The settlements will also see Ishan forfeit a total of 10.97 Ether and 9,440 Tether, while Nikhil will forfeit the sum of $892,500.

Cooperation clause

As part of the settlement, Ishan also agreed to cooperate with the SEC in further investigations relating to the case in the future. The extent to which the market regulator will want to dig into the nine securities tokens is unknown at this time, but chances are it will make good on the Wells Notice it issued to Coinbase exchange earlier this year.

With an agreement reached in the insider trading lawsuit, the SEC said the settlements are still subject to final court approval. The investigations in the case saw support from the U.S. Attorney's Office for the Southern District of New York and the FBI.

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About the author

Godfrey Benjamin is an experienced crypto journalist whose main goal is to educate everyone around him about the prospects of Web 3.0. His love for crypto was birthed when, as a former banker, he discovered the obvious advantages of decentralized money over traditional payments. With his vast experience covering various aspects of Web3, Godfrey's articles has been featured on, Cryptonews and Coingape, among others.