The former product manager of Coinbase Global Inc. leaks all insider information to help his brother and friends buy tokens before listing on the cryptocurrency exchange. However, the US authorities arrest him, stating he is fraudulent and guilty of sharing the company’s confidential information. The product manager Ishan Wahi and his brother Nikhil Wahi have been under US custody since Thursday in Seattle.
The Southern District of New York and the Securities and Exchange Commission are focusing on the constant investigation with the prosecutors for allegedly violating the anti-fraud regulations of the company. In a press release, the US Attorney, Damian Williams, states that Coinbase has been supportive throughout the investigation. Further, he also says that the exchange operator is not at fault. Hence, he is not a part of the custodial investigation, and neither would he face any charges.
Coinbase allows Americans to trade more than 150 well-known crypto tokens. This exchange platform is one of the largest cryptocurrency exchanges in the US. Hence, there is a possibility of a sudden surge in the price of tokens and a rush right after the release of any token amongst crypto enthusiasts. Under such a scenario, Ishan Wahi tips off his brother Nihil Wahi and his friend Sameer Ramini when the tokens are about to get listed on the platform.
The brother and friend allegedly took full advantage of this confidential information to trade dozens of tokens from June 2021 to April 2022. In addition, the government claims that the prosecutors have earned a profit of more than $1 million. However, the prosecutors in an investigation procedure rightly claimed that using the ethereum blockchain wallet, they would acquire the assets before the announcement of Coinbase and further sell off those assets at a profitable rate.
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