Coinbase has been under the onslaught of the SEC for a few months. The regulatory body accused some executives of insider trading. After a long investigation, the evidence is there and the crypto sector is having a rather sensational first experience.
When Coinbase decides to conduct the investigation
Earlier this year, one of the best crypto trading platforms was the subject of insider trading rumors. Faced with the growing hostility towards the exchange, Coinbase decided to conduct the investigation to clear itself of any suspicion. At the end of the latter, it emerges that an employee of the company communicated confidential information to his relatives.
On his Twitter profile, Brian Armstrong, the CEO of Coinbase wanted to explain fact. In doing so, he reiterated that his company carefully monitors any illegal activity. The Manhattan federal prosecutor’s office and the regulatory body (SEC) announced on Thursday the indictment of three suspects. In this case that of a product manager of the platform, his brother and a friend.
Thus, Ishan Wahi, 32, and Nikhil Wahi, his brother, were arrested on Thursday morning in Seattle. As for the third, Sameer Ramani, he is still at large. Michael Driscoll, the deputy director of the FBI said that the three suspects had made gains of about $ 1.5 million by making illegal transactions on at least 25 cryptocurrencies.
The powerful action of social networks on this case
Ishan Wahi had been working at Coinbase since October 2020 as a product manager in charge of an asset list. Since he was aware of the asset listing schedule, the latter took the opportunity to prepare his twisted moves. Indeed, he entrusted this information to his two acolytes who were in charge of buying the tokens before they were listed on the stock exchange.
Then they resold them profitably after the public listing on Coinbase. This is Cobie, a crypto influencer who brought to light some suspicious details last April regarding the activity of a wallet. Indeed, the latter reported on Twitter that an ethereum wallet had bought some tokens for several hundred thousand dollars 24 hours before they were listed on the platform.
The accused of insider trading repeated their wrongdoing 14 times before the case was discovered. The latter believed they were using the apparent anonymity of the crypto ecosystem. However, even if it is often questioned by some politicians, this survey shows that the activity on the blockchain still leaves traces.
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The world is changing and adaptation is the best weapon to survive in this undulating universe. Crypto community manager at the core, I am interested in everything related directly or indirectly to the blockchain and its derivatives. In order to share my experience and make known a field that I am passionate about, there is nothing better than writing informative and casual articles at the same time.