The logo for Coinbase Global Inc, the biggest U.S. cryptocurrency exchange, is displayed on the Nasdaq MarketSite jumbotron and others at Times Square in New York, U.S., April 14, 2021.

Shannon Stapleton | Reuters

Three people have been charged in the first-ever crypto insider trading tipping scheme, according to a release from the U.S. Attorney’s Office for the Southern District of New York.

U.S. Attorney Diamian Williams charged Ishan Wahi, a former product manager at Coinbase, his brother, Nikhil Wahi, and a friend, Sameer Ramani, with wire fraud conspiracy and wire fraud in connection with a scheme to commit insider trading in cryptocurrency assets. The charges allege the individuals planned to use confidential Coinbase information about which crypto assets were scheduled to be listed on Coinbase’s exchanges. 

The release also says that Ishan Wahi attempted to flee to India ahead of a scheduled interview by Coinbase’s security department, but was prevented by law enforcement from leaving.

“Today’s charges are a further reminder that Web3 is not a law-free zone,” Williams said in the release. “Our message with these charges is clear: fraud is fraud is fraud, whether it occurs on the blockchain or on Wall Street.  And the Southern District of New York will continue to be relentless in bringing fraudsters to justice, wherever we may find them.”

Ishan Wahi and Nikhil Wahi were arrested on Thursday morning in Seattle, and Ramani remains at large.

Leave a Reply

Your email address will not be published.