The SEC ( Securities and Exchange Commission) announced that Ishan and Nikhil Wahi have agreed to settle insider trading charges.
The former Coinbase product manager and his brother have been charged with insider trading of at least 9 crypto assets. These cryptocurrencies were available on Coinbase for trading.
According to the latest post by the SEC, both Nikhil and Ishan have agreed to be permanently charged with the violation of Section 10 (b) and 10 b-5. In addition, the duo has been charged with paying disgorgement of unethically-gotten gains and prejudgment interest.
As usual, when criminal courts order defendants to forfeit ill-gotten gains, prejudgment interest, and disgorgement, the case would be considered satisfied by forfeiting the Wahi brothers’ assets if the court approves it and the SEC decides not to seek any civil rights penalty.
Given the severity of the charges, all eyes turned to the popular crypto exchange. As expected, users started to look for a review of Coinbase that would shed light on its operations extensively.
The latest announcement by the SEC is a result of a complaint filed back in July 2022. The Commission reached the US District Court to appeal that the ex-product manager has coordinated Coinbase’s public listing announcements.
Such information is considered confidential by Coinbase, and team members are instructed not to trade on the basis of such information or tips related to such data. But, from June 2021 to April 2022, Ishan Wahi repeatedly breached this code and tipped the content and timing of upcoming listings.
This data leak resulted in Sameer Ramani, Ishan’s friend, and Nikhil Wahi earning ill-gotten gains. Sameer and Nikhil bought around 25 crypto assets, out of which at least 9 were securities, and sold them shortly after the announcement boosted their price. The duo has now agreed to settle the charges and not deny the allegations by the SEC.
Michael Brennan, Gregory Padgett, and Jenni B. Krasner conducted the investigation for the SEC. Moreover, Carolyn Welshhans, Joseph Sansone, and Paul Kim supervised it. The SEC thanked all the involved parties for assisting them during the case in their latest post.