Nikhil Wahi would have taken advantage of confidential information concerning Coinbase to make a fortune. A US court sentenced him to 10 months in prison. This is a first in the world of virtual currencies.
The case started in July 2022, when Seattle law enforcement apprehended brothers Nikhil and Ishan Wahi. They accused them of having, with the help of a third accomplice, benefited from confidential information and of having taken advantage of it to make a fortune in virtual currencies such as Bitcoin. The financial market supervisory authorities harshly punish people who “disseminate for the purpose of enrichment (or not) of this type of information”. The Wahi were therefore accused of insider trading. According to justice, the possession of this sensitive information would have allowed them to gain, in an illicit way, nearly $1.5 million.
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The lure of profit was irresistible. Ishan Wahi worked as project manager at Coinbase. This position allowed him to obtain very sensitive data concerning the virtual currencies that his company was about to list and promote on the platform. Thus, according to the judges, Me Wahi would have, on at least fourteen occasions, informed Nikhil and their other accomplice of the precise date of public presentation of these new products. So much knowledge that enabled them to carry out highly profitable trades on these crypto assets ahead of public announcements from Coinbase.
He exchanges confidential information on cryptocurrencies and risks spending 20 years behind bars
Gentlemen Wahi have tried to hide their misdeeds by diversifying amassed virtual currencies and creating accounts under fake names on other centralized exchanges and transiting their assets through various Ethereum digital wallets.
Their efforts were in vain, they were caught by the American authorities for whom insider trading is heavily punishable. Nikhil Wahi was sentenced to 10 months in prison. That incurred by his brother is heavier: he could spend 20 years behind bars.
Source: Gizmodo