Former Coinbase product manager of Indian origin pleads guilty in insider trading scam

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former coinbase employee pleads guilty to insider trading scam worth 1 million

The Coinbase case is registered as the first insider trading scam in the crypto industry.

Former Coinbase product manager Ishan Wahi has pleaded guilty to committing insider trading fraud by colluding with his brother and his friend in India. The United States prosecutors have labelled this case as the first insider trading scam surrounding cryptocurrency.

According to the investigation, Ishan disclosed private information related to the new coins listing on the Coinbase exchange to his brother Nikhil and friend Sameer Ramani. Prior to the official announcement, his brother and friend bought loads of new coins, anticipating the rise in value.

Once the announcement was made public and was spread through the mainstream media. Both of them kept the profits and sold the bought asset. It was believed that the trio made combined profits of nearly $1 million by following this practice for months.

During the investigation, it was revealed that the pair traded 25 cryptocurrencies and booked profits after the leaked information was provided to them by Ishan who was sitting in the U.S working for Coinbase.

Ishan was arrested last year just hours before boarding his flight to India.

As part of his plea, Ishan has agreed to be sentenced to between 36 and 47 months in prison. On the contrary, his brother Nikhil pleads guilty to the crime last year and will possibly face a prison sentence ranging from 10 to 16 months.

The next hearing is scheduled for May 10.

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