The US Department of Justice accused a former OpenSea employee of insider trading last month. A former Coinbase employee who engaged in insider trading on at least 25 cryptocurrencies has now been detained by him. It should be emphasized that using sensitive and private information to execute profitable trades constitutes insider trading for securities investors.
The First-Ever Arrest for Crypto Insider Trading
“A former Coinbase executive has apparently been detained in a crypto insider trading case,” Bitcoin Magazine tweeted on July 21. In fact, Ishan Wahi, a former manager of the Coinbase cryptocurrency exchange, was detained by the US Department of Justice on July 21 for engaging in insider trading on at least 25 cryptocurrencies while still employed by the business.
It appears that the accused worked along with Sameer Ramini and his brother Nikhil Wahi. The Department of Justice specifically claimed that these three people engaged in “a fraudulent conspiracy and wire fraud as part of a plan to engage in insider trading in cryptocurrencies using confidential information from Coinbase regarding these digital assets that were intended to be listed on Coinbase exchanges” in the announcement of the case.
It’s possible that Nikhil Wahi was also detained, but Sameer Ramini is still at large. Note that this is the first insider trading case to result in an arrest in the bitcoin sector. According to American prosecutor Damian Williams, this charge serves as further evidence that the legal system is likewise concerned with the Web3 industry.
Two key players in an insider trading investigation at Coinbase have now been taken into custody by the US Department of Justice. Attorney Damian Williams stated that, in this sense, “Fraud is fraud, whether it occurs on the blockchain or on Wall Street. This is our message with these accusations.
