The United States SEC has announced that it has reached an agreement with ex-Coinbase manager Ishan Wahi over charges of insider trading. As previously reported by 36crypto, Ishan Wahi, a former manager at Coinbase was charged and sentenced to 2 years in prison for providing inside insider trading information.
In a press release earlier today, the Securities and Exchange Commission announced that Ishan Wahi and his brother, Nikhil Wahi have agreed to the charges.
According to the press release, both brothers have agreed to refund the gains they made through the act. The brothers were charged alongside their friend Sameer Ramani who was not in the country when the first sentence was passed. The trio was charged with trading as much as 25 cryptocurrencies with first-hand information from Ishan about their listings. Furthermore, the SEC stated that of the 25 digital assets traded, nine of them are regarded as securities.
“Ishan Wahi and his brother, Nikhil Wahi, agreed to settle charges that they engaged in insider trading through a scheme to trade ahead of multiple announcements regarding at least nine crypto asset securities that would be made available for trading on the Coinbase platform,” says the SEC.
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Ishan Wahi and his brother are required to pay disgorgement of all the illegally gotten gains as well as prejudgment interest in the case.
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In the announcement, the SEC also confirmed the previous sentence of the brothers. It stated that Ishan and Nikhil Wahi pled guilty to conspiracy to commit wire fraud and were both sentenced to 24 months and 10 months in prison respectively.
Furthermore, Ishan will forfeit 10.97 ether and 9,440 Tether, and his brother Nikhil was ordered to forfeit $892,500.
Ishan to cooperate with the SEC
Meanwhile, per the settlement, Ishan Wahi agreed to work hand in hand with the Commission for further investigation associated with the case. Although it is unclear at this moment how deeply the market regulator would want to go into the nine securities tokens, there is a significant probability that it will follow through on the Wells Notice it issued to the Coinbase exchange earlier this year.
Read the full press release here
Victor Swaezy
Victor Swaezy is a crypto-journalist with more than 3 years of experience in covering blockchain technology and digital currencies news. Known for his comprehensive reporting, Victor has contributed to leading industry publications such as Coinfomania and Crypto News Guru, providing market participants with the required knowledge to make informed decisions. When he is not working, he loves to watch movies and have a good time.