The former head of product at Coinbase Global, Ishan Wahi, was sentenced by a federal judge to 24 months in prison for insider trading.
Wahi was accused of using confidential information he obtained while working at Coinbase to profit from a new token listing worth $1.5 million.
A judge ordered Wahi to be held at the Fort Dix Federal Correctional Institution in New Jersey. Wahi’s brother, Nikhil Wahi, and his associate Samir Ramani were also involved in the scheme.
Ishan’s attorney argued that his immigration status, the non-violent nature of the crime, and lack of criminal record should be considered at sentencing.
Ishan apologizes for his behavior and says that he made a big mistake. The SEC is also pursuing a similar case against Ishan related to violations of securities laws.
Prosecutors argued that Ishan, as an employee of Coinbase, bears responsibility because he orchestrated the insider trading scheme. Ishan’s brother, Nikhil, pleaded guilty in September 2022 to fraud conspiracy charges and was later sentenced to 10 months in prison.
Prosecutors said Ishan was the most guilty of the three, having masterminded the scheme. internal marketing. As you know, trading is a serious crime that undermines the integrity of the financial market.
The case against Ishan Wahi and his associates is a reminder that such actions will have serious consequences. Cooperation between law enforcement and regulators such as the SEC is important in detecting and prosecuting cases of insider trading.
The brothers said they committed a crime
The brothers pleaded guilty to trafficking charges, and Ishan reportedly agreed to a prison sentence of 36 to 47 months.
The United States Securities and Exchange Commission has also charged Ishan with violating security laws. On April 3, the SEC said it had reached an “agreement in principle” with Coinbase’s former product manager.