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Details: ht
Ex-Coinbase Manager Gets Two Years for Crypto Insider Trading
First time ever. The crypto industry watched as Ishan Wahi, once a product manager at Coinbase, got slapped with a two-year prison sentence for insider trading. Groundbreaking case, really - the first crypto insider trading prosecution we've seen in the US.
The Sneaky Stuff
Wahi tipped off his brother Nikhil and their buddy Sameer Ramani. Confidential info about which cryptocurrencies would soon list on Coinbase. Pretty valuable intel.
They made moves before announcements went public. Raked in over $1 million between July 2021 and May 2022. Not too shabby.
Things fell apart in July 2022. Both Wahi brothers got arrested. Nikhil folded fast - guilty plea, 10-month sentence. Ishan? Not so quick. He fought back initially.
Fighting the Charges
By February, Ishan tried a different angle. Asked US authorities to just drop the whole thing. His reasoning seemed kind of creative - the SEC couldn't call these cryptocurrencies securities, so insider trading laws shouldn't stick. His legal team insisted these tokens weren't investment contracts.
The Hammer Falls
Prosecutors wanted three-plus years. The judge settled on two.
Ishan wanted less time than his brother got. No dice. The judge wasn't having it. Breach of trust for personal gain? That's serious business, apparently.
Not entirely clear if this will set the pattern for future cases, but it's not the only one out there. Some former NFT exchange product manager got caught in similar trouble - using private info about upcoming listings to make money.