- Ishan Wahi, former Product Manager for Coinbase (NASDAQ:COIN), was caught committing insider trading.
- Coinbase fired Wahi with unpaid administrative leave on July 15.
- The culprits purchased a one-way ticket to their home country but failed to board his flight as law enforcement barred him.
Yesterday, an ex-Coinbase Employer, Ishan Wahi was caught leaking information to his brother, Nikhil Wahi, and a friend, Sameer Ramini, to buy tokens even before they were listed on the exchange. Wahi was found violating the anti-fraud rules of Coinbase.
According to sources, Nikhil Wahi and his friend allegedly used that information to trade heaps of tokens from July 2021 – April 2022, topping off more than $1 million.
Furthermore, attorneys charged the three men with ‘wire fraud conspiracy,’ ‘wire fraud,’ and the U.S Securities and Exchange Commission (SEC) charged them with insider trading.
Research says that the lawyers for Ishan Wahi and his brother refused to comment. Meanwhile, Ramini’s whereabouts are currently unknown.
Paul Grewal, Coinbase’s Chief Legal Officer, said:
Any illicit behavior is something we take super seriously. We have zero tolerance for it.
Additionally, Grewal said that Coinbase immediately conducted an investigation after being aware of the insider trading issue and fired Wahi with unpaid administrative leave on July 15.
Manhattan US Attorney Damian Williams reported, “Our message with these charges is clear: fraud is fraud, whether it occurs on the blockchain or Wall Street.”
Williams additionally reminded the public that today’s incident is a reminder that Web3 is not a law-free zone.
According to sources, despite being under suspicion, Nikhil Wahi had purchased a one-way ticket to his home country, India, when he was called for a meeting with the Security Director of Coinbase. Nonetheless, he was not able to board the flight as law enforcement was on the lookout.