Coinbase Ex-Product Manager Pleads Not Guilty to Insider Trading

A former Coinbase product manager has pleaded not guilty to insider trading.

Ishan Wahi, 32, pleaded not guilty at a hearing on Wednesday to wire fraud charges that allegedly occurred while working at crypto exchange Coinbase, Reuters reported.

The Ministry of Justice accused Wahi for wire fraud and conspiracy to commit wire fraud in an insider trading scheme in an indictment filed July 21 in New York.

Separately, the Securities and Exchange Commission (SEC) filed insider trading charges against Wahi the same day. According to the SEC deposit, Wahi allegedly shared Coinbase listing announcements to his brother Nikhil Wahi and friend Sameer Ramani in advance. Nikhil Wahi and Ramani then reportedly took that insider knowledge to trade before the ads were released and made over $1.1 million in profit.

The SEC alleges that Ishan Wahi, who is an Indian national with a U.S. work visa, used an international phone number to communicate insider trading information via phone calls and text messages, according to the SEC. case.

Ishan allegedly shared inside information before at least 14 different Coinbase listings for over 25 different cryptocurrencies.

“As part of an insider trading scheme, Ishan Wahi breached his duties of confidence to Coinbase,” the Justice Department argued in its filing.

The Wahi and Ramani brothers are also said to have “taken many steps to elude detection by law enforcement “by moving their cryptocurrencies across multiple Ethereum wallets and even wallets held in the name of others, according to the indictment.

“Today’s charges are yet another reminder that Web3 is not a lawless zone,” U.S. Attorney Damian Williams said in a press release when the charges were originally filed.

The Department of Justice also alleged in its charge that Ishan Wahi “bought a one-way plane ticket to a foreign country in an unsuccessful attempt to flee the United States”.

While the Wahi brothers have been arrested, Ramani’s whereabouts are unknown.

Ishan’s attorney, public defender Corey Endo, did not immediately respond to Decryptrequest for comment.

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