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Ishan Wahi, A Former Coinbase Product Manager, Gets Two Years Of Prison Time Because Of Insider Trading

ishan wahi a former coinbase product manager gets two years of prison time because of insider trading

Coinbase’s former product manager, Ishan Wahi, got two years in prison for his insider trading. This crime is the first of its kind in the cryptocurrency world states some experts. Ishan Wahi is 32 years old, and he, his brother, and his partners have made over $1.5 million by investing in not-yet-listed digital assets before they launch in America’s largest cryptocurrency exchange.

ishan wahi a former coinbase product manager gets two years of prison time because of insider trading 2

Ishan Wahi’s Plans were Foiled

Ishan Wahi used his authority and his knowledge in order to buy brand-new assets just before they made their debut in the market, and sold them shortly, making large sums of money. When this large exchange, which is a San Fransisco-based exchange, lists new coins on the platform, their value increases rapidly; this occurrence is often known as “the Coinbase effect”. Ishan Wahi and his partners in crime used this effect to their advantage and gained a huge sum by manipulating the market and the newly emerging cryptocurrencies at their whim.

The Department of Justice says that Ishan Wahi tried to escape the country after he was put under an inquiry by Coinbase. Soon after this, he was caught by the American police while trying to board a flight to India. Wahi pleaded guilty to this crime. He was deemed guilty by the Southern District of New York of two counts of conspiracy regarding wire fraud.

Damian Williams, a U.S. Attorney, said on May 9 that Wahi “violated the trust placed in him by his employer” by attaining and distributing secret listings that were entrusted to him. “Today’s sentence should send a strong signal to all participants in the cryptocurrency markets that the laws decidedly do apply to them,” Damian Williams continued.

Ishan Wahi’s brother (Sameer Ramani) and his associates were also charged with various civil charges by the U.S. Securities and Exchange Commission. These sentences came approximately a week after OpenSea’s former head of product was charged with money laundering and fraud. It seems like crime rates have skyrocketed in the crypto field this year.

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