SEC Files Insider Trading Charges Against Ex-Coinbase Employee

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Securities and Exchange Commission Files Charges Against Former Coinbase Employee for Insider Trading

The Securities and Exchange Commission (SEC) has filed charges against a former Coinbase employee for insider trading. The employee, Ishan Wahi, is accused of purchasing and trading crypto assets based on confidential information he obtained about Coinbase's future listings of digital tokens.

According to the SEC's complaint, Wahi received confidential information about Coinbase's upcoming listings through his brother, Nikhil Wahi, who was also employed by Coinbase. Ishan Wahi allegedly traded on this information ahead of the public announcements, purchasing large amounts of the tokens, including AMP, RLY, and DDX.

The SEC alleges that Ishan Wahi profited significantly from his insider trading activities. For example, he allegedly earned over $1.1 million in profits from trading AMP before it was listed on Coinbase.

The complaint also alleges that Nikhil Wahi and their associate, Sameer Ramani, participated in the insider trading scheme. Nikhil Wahi is accused of passing on the confidential information to his brother, while Ramani allegedly assisted Ishan Wahi in making the trades.

The SEC is seeking injunctions against all three individuals, disgorgement of ill-gotten gains, civil penalties, and an officer and director bar against Nikhil Wahi and Ishan Wahi.

The charges highlight the SEC's ongoing efforts to combat insider trading in the cryptocurrency market. It is a reminder that individuals who misuse confidential information for financial gain will be held accountable.

The SEC's investigation is ongoing, and the agency is expected to take further action as the investigation progresses.