Ishan Wahi, who had worked as a product manager at Coinbase, was sentenced to prison for participating in illegal economic activities.
A quick reminder of the facts, in July 2022, Ishan Wahi gave confidential information to two accomplices about the registration of new crypto-assets on the exchange platform, one of the largest in the world. The three were thus charged in the United States for wire fraud and insider trading.
Coinbase has cooperated fully with authorities
The three suspects are charged with “conspiracy to commit wire fraud in connection with a scheme to commit insider trading (…) by using confidential information about crypto-assets that were to be listed on Coinbase exchanges,” according to a statement at the time.
A few months after the indictment, Reuters reported that the former Coinbase employee was eventually sentenced to two years in prison.
The 32-year-old, who pleaded guilty earlier this year, had shared confidential information with his younger brother Nikhil Wahi, who was sentenced to 10 months in prison in January, and his friend Sameer Ramani, who is still wanted by authorities.
I am very sorry for my actions. My position in the company gave me access to confidential information. I knew it was wrong,” Ishan Wahi said during the hearing.
Sameer Ramani allegedly used the information to make deals before the announcement was made public. The scheme set up had allowed the 3 men to earn $1.5 million by trading about 50 cryptos before they were listed on Coinbase.
In any case, Mr. Wahi’s actions violated Coinbase’s policies and code of conduct, and the company has fully cooperated with authorities in the investigation.