Former Manager of Coinbase Admits to Charges of Crypto Insider Trading; Scheme Made $1.5M

A former Coinbase worker has already acknowledged participating in a bitcoin insider trading operation while still employed by the trading company. Ishan Wahi took use of his position to assist his brother and a friend in obtaining loans when purchasing cryptocurrencies, and the group was successful in making over $1.5 million from their scam. Sharing insider trade information is illegal since it gives people who are aware of events an unfair advantage over others who purchase it from a company without detailed market knowledge. Reports claimed that Wahi has already admitted to the insider trading allegations brought against him in US courts, with the episode involving the former employee occurring more than 14 times. He carried out his deeds while working for Bryan Armstrong's Coinbase, a well-known cryptocurrency trading corporation on a global scale. [caption id="" align="aligncenter" width="2000"] Image credit- Compliance Week[/caption] Wahi used his position to his advantage by providing Sammer Ramani and his brother Nikhil Wahi with insider trade knowledge. Wahi will be sentenced in May and now faces a prison term of 36 to 47 months for his offenses. However, his brother, Nikhil Wahi, agreed to charges of wire fraud conspiracy brought against him in September 2022 and now faces a ten-month prison sentence. Also read: Google Password Manager now enables users to add notes to their new & old passwords Wahi and His Companions Made More Than $1.5 Million from Their Scheme According to a report by Engadget, the Wahi brothers and their accomplice Ramani has amassed more than $1.5 million in ill-gotten gains as a result of the insider information the former Coinbase employee acquired. Their plan gave them the advantage of choosing which coins to buy, especially those that Coinbase would add to their list, raising their investment worth. [caption id="" align="aligncenter" width="744"] Image credit- New York Post[/caption] Insider trading is a widespread problem that affects many different global industries. Gaining an advantage over other businesses or the market to ultimately make more money is one of the key motivations. Since the advent of cryptocurrencies, various CEOs and members of the business have been accused of insider trading, including one case involving OpenSea. Without regard to whether they share knowledge with friends and family or for personal gain, this gives the insider an unfair advantage. There is a notable case against a Big Tech business from a Meta investor who accused Mark Zuckerberg of this illegal activity. Of course, this is not unique to the cryptocurrency industry alone. Additionally, the company's billionaire CEO was sued for abusing his position to his advantage. The cryptocurrency market is rife with data and information that can be used to study the market and identify the best and most lucrative coin to invest in in order to skyrocket one's financial fortunes. It is still inappropriate to get assistance from those working for trading companies, as Wahi demonstrated in the past by utilizing his position as management at Coinbase to advance his career.