Ishan Wahi, a former product manager at Coinbase, has been handed a two-year prison sentence for engaging in insider trading. This groundbreaking case marks the first instance of insider trading within the cryptocurrency industry.
On Tuesday, US District Judge Loretta Preska delivered the sentence to Wahi in a federal court in Manhattan. Wahi had previously pleaded guilty to two counts of conspiracy to commit wire fraud in February. This legal proceeding adds to the growing number of high-profile crypto-related cases in New York, including the FTX collapse and the ongoing prosecution of founder Sam Bankman-Fried.
In an unprecedented development for the digital asset sector, Ishan Wahi has been sentenced to two years in prison for insider trading. Today’s sentencing follows Wahi’s admission of guilt.
According to federal prosecutors, Wahi shared confidential information with his brother Nikhil and their friend Sameer Ramani, as reported by Reuters. The information pertained to the selection of digital assets to be listed on the popular Coinbase cryptocurrency exchange.
As a result of this inside knowledge, the trio managed to generate $1.5 million by trading 55 different cryptocurrencies. Notably, these transactions occurred prior to the official listing announcements, spanning the period from June 2021 to April 2022.
Nikhil Wahi, who pleaded guilty to the charges in September, received a ten-month prison sentence in January. He had requested a sentence that mirrored his brother’s, citing other insider trading cases that did not result in incarceration. However, the prosecution argued for a different outcome.
Specifically, prosecutors sought a three-year prison term for the former Coinbase manager, aiming to establish a precedent and discourage future instances of insider trading within the crypto space. Ultimately, Wahi’s sentence aligns with the prosecution’s request, resulting in a two-year prison term.
Written By Agbo Obinnaya
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