https://www.channelnewsasia.com/business/ex-coinbase-manager-pleads-guilty-insider-trading-case-3260811
A former Coinbase Global Inc product manager pleaded guilty on Tuesday in what US prosecutors have called the first insider trading case involving cryptocurrency, his defense lawyer said in a court hearing.
Ishan Wahi, 32, pleaded guilty to two counts of conspiracy to commit wire fraud, after initially pleading not guilty last year.
Prosecutors said Wahi shared confidential information with his brother Nikhil and their friend Sameer Ramani about forthcoming announcements of new digital assets that Coinbase would let users trade.
"I knew that Sameer Ramani and Nikhil Wahi would use that information to make trading decisions," Ishan Wahi said during Tuesday's hearing in federal court in Manhattan. "It was wrong to misappropriate and disseminate Coinbase's property."
Nikhil Wahi and Ramani were charged with using ethereum blockchain wallets to acquire digital assets and trading at least 14 times before Coinbase announcements between June 2021 and April 2022.
The announcements typically caused the assets to rise in value and generated at least US$1.5 million in illicit gains, prosecutors have said.
Nikhil Wahi pleaded guilty in September to a wire fraud conspiracy charge, and in January was sentenced to 10 months in prison. Ramani is at large.
As part of a plea deal, prosecutors stipulated that sentencing guidelines called for Ishan Wahi to be imprisoned for between 36 and 47 months. US District Judge Loretta Preska scheduled his sentencing hearing for May 10.
Coinbase is one of the world's largest cryptocurrency exchanges. The company has said it shared its findings from an internal probe into the trading with prosecutors.
On Monday, Ishan Wahi asked a judge to dismiss a parallel lawsuit from the Securities and Exchange Commission (SEC), saying that charges represent an "abuse of power" by the agency. At issue is whether nine tokens listed on Coinbase were, in fact, securities and subject to SEC regulation.
A spokesperson for the SEC declined to comment.
In pleading guilty to the criminal charges on Tuesday, Ishan Wahi said he did not believe any of the relevant tokens were securities. Noah Solowiejczyk, a prosecutor, said the question of whether or not the tokens are securities was not an element of prosecutors' case.
Ethereum co-founder Vitalik Buterin urged voters not to support candidates solely for being pro-crypto in a recent blog post. This sparked diverse reactions, especially among Trump supporters and conservative voices.
KikyoPixelverse and Pudgy Penguins have teamed up to blend NFT collectibles with gameplay, expanding both brands' reach in the Web3 community. Pixelverse's growth, fueled by strategic partnerships and funding, positions it as a leading player in crypto gaming, aiming to make blockchain technology accessible through innovative game mechanics.
JoyBlum, a hybrid crypto exchange within Telegram, plans to launch a comprehensive product with swaps, wallets, and perpetual contracts, by the end of this year. A potential token launch is on the horizon too.
CatherineCatizen's Play-to-Airdrop game is gaining massive attention with significant investments from The Open Platform (TOP) and HashKey Capital, thanks to its engaging gameplay and strong integration with the TON blockchain. With 25 million players and innovative AI-powered features, Catizen is set to make a major impact in the GameFi world.
AnaisOpenAI launched "GPT-4o mini" on 18 July, claiming it’s cheaper and more efficient than GPT-3.5 Turbo. Is OpenAI mimicking Apple's frequent releases, and will this impact the quality of their generative AI models?
KikyoChina’s film industry is embracing AI with two groundbreaking series, "Sanxingdui: Future Apocalypse" and "Shanhai Qijing: Pibo Zhanlang," showcasing how AI can enhance storytelling and reduce production costs. While AI brings efficiency and new creative possibilities, it also raises concerns about job displacement, emotional depth, and maintaining artistic control.
JoyzkLink, a multi-chain and aggregated multi-rollup Layer 3 infrastructure, has announced its ZKL token distribution, set to begin on 22 July at 12pm UTC (8pm SGT). Will it be the solution to unlocking DeFi’s full potential?
CatherineBanana Gun, a Telegram trading bot launched in 2023, has quickly gained prominence with $5.31 billion in trading volume and a recent listing on Binance. Despite a rocky start, its community-driven approach, innovative features, and strong performance have fueled its growth and potential for future success.
JoyThe ApeCoin community is voting on a proposal to establish an APE-themed hotel in Bangkok. With nearly 90% of votes in favour and the voting concluding on 31 July, will it be shelved?
KikyoJapanese creatives are worried that AI could misuse their work without proper credit or compensation, as AI programs can replicate their unique styles. The government is debating whether AI-generated images infringe on copyright and is considering legal changes to protect artists while attracting tech companies.
Anais