Coinbase Insider Trading Case: Accused Brothers Agree to Pay Disgorgement

31. Mai 2023 Aus Von admin

Summary of Article:

  • The SEC reached a settlement with the Wahi brothers who were convicted in the first-ever crypto trading insider case.
  • The brothers have agreed to pay disgorgement and prejudgement interest.
  • Coinbase has been trying to get more clarity regarding the crypto market by filing a petition in federal court.

SEC Announces Settlement with Accused in Coinbase Insider Trading Case

The United States Securities and Exchange Commission (SEC) announced on May 30 that it had reached an agreement with two accused in the first-ever cryptocurrency trading insider case. The brothers, Ishan and Nikhil Wahi, have agreed to pay disgorgement and prejudgment interest.

Details of Insider Trading Case

Ishan Wahi was working as a product manager at Coinbase when he leaked information related to upcoming cryptocurrency listings to his brother, Nikhil, and friend Sameer Ramani. With this information they made a profit of $1.5 million between June 2021 and May 2022. As a result, both Ishan and Nikhil were sentenced to prison while Sameer remains at large.

SEC Agreement with Brothers

In its statement, the SEC said that the disgorgement and prejudgment interest would be deemed satisfied by orders of forfeiture of assets by the court if approved. Furthermore, no civil penalties will be sought since both brothers have already received prison sentences.

Coinbase Seeks Clarity Regarding Crypto Market

Coinbase has also been trying to gain regulatory clarity for the digital assets industry by filing a petition in federal court seeking rulemaking for cryptocurrencies. However, this was recently rejected by the SEC which cited lack of jurisdiction over such matters.

The SEC continues to take action against entities related to cryptocurrencies while Coinbase is fighting for more clarity regarding digital assets regulation. The Wahi brothers have agreed to pay disgorgement as part of their settlement with the regulator for their involvement in illegal insider trading activities involving cryptocurrencies .