Ex-Coinbase Manager Arrested in US Crypto Insider-Trading Case

Justin Freeman

Ex-Coinbase Manager Arrested in US Crypto Insider-Trading Case

A Coinbase manager has been charged with insider trading by two US Federal regulators as the regulatory clamp down on crypto assets gains momentum. The perpetrator, Isham Wahi, was ultimately stopped at the airport gates trying to leave the country on a last-minute flight to India. He was found to be in possession of three large suitcases and enough personal items to support an extended stay in India.

The details of the charges against Wahi demonstrate the increasing willingness of authorities to use the strongest force they can to assert their authority over the crypto ecosystem. The Southern District of New York (SDNY) charges include wire fraud and wire fraud conspiracy; those served by the Securities and Exchange Commission (SEC) relate to insider trading.

“Fraud is Fraud, is Fraud”

One of the most notable developments is that this is the first time the SEC has issued insider-trading charges relating to crypto trading. In a welcome move for those who want to trade the sector with some sense that fraudulent industry insiders are not distorting the playing field, Manhattan US Attorney Damian Williams said in a statement. “Our message with these charges is clear: fraud is fraud is fraud, whether it occurs on the blockchain or on Wall Street.”

Wahi is charged with one of the oldest tricks in the book. It is alleged that during his time as a senior manager at Coinbase, he tipped off his brother and a friend with trade-sensitive information, which allowed the scammers to make profits above $1m.

The SDNY claims that between June 2021 and April 2022, the names of new altcoins due to be launched on the Coinbase platform were shared with the co-conspirators. Coinbase’s pool of approximately 150 digital currencies is constantly increasing, and when those new coins are listed on the platform, the rush of interest often sees the price surge. By simply using a foreign registered mobile phone and relaying the names of up-and-coming coins, Wahi could pinpoint those cryptos about to receive a seal of approval from one of the world’s most prominent crypto exchanges.

Coinbase itself has been referred to as cooperating with investigations. Paul Grewal, Coinbase’s chief legal officer, has gone on record to say: “Any illicit behaviour is something we take super seriously. We have zero tolerance for it.” Those words were backed up by Coinbase immediately conducting its own investigation and putting Wahi on unpaid administrative leave until officially firing him on July 15th.

Crowdsourcing information about scam brokers can help others avoid falling into the traps set by disreputable brokers, and you can share your experiences here. If you would like to know more about this particular topic or have been scammed by a fraudulent broker, you can also contact us at [email protected]


Justin Freeman

Latest news

Kardashian’s $1m Fine Is A Warning To All Influencers
Kim Kardashian agrees to pay a $1. Read more
The Loophole Desperate Investors Are Using To Scramble Out Of FTX
NFT loophole allows FTX investors to reclaim their funds Desperate measures appear to be the only option for beleaguered FTX investors Claims of a $1. Read more

Safest Forex Brokers 2022

Broker Info Best In Customer Satisfaction Score
#1 AvaTrade LogoYour capital is at risk Founded: 2006 Globally regulated broker
Number One Broker
BEST CUSTOMER SUPPORT Visit broker
4.9
#2 BlackBull Markets LogoYour capital is at risk Founded: 2014 Global Forex Broker
Number One Broker
BEST SPREADS Visit broker
4.8
#3 75 % of retail CFD accounts lose money Founded: 2014 Global Forex & CFD Broker
Number One Broker
Best Trading Conditions Visit broker
4.9
#4 Forex Broker eToro Logo67% of CFD traders lose Founded: 2007 Global CFD & FX Broker
Number One Broker
ALL-INCLUSIVE TRADING PLATFORM Visit broker
4.9
#5 Plus500 Logo77 % of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Founded: 2008 Global CFD Provider
Number One Broker
Best Trading App Visit broker
5

    Forex Fraud Certified Brokers

    IC Markets Logo
    XM Logo
    skilling logo
    BlackBull Markets Logo
    Exness Small Logo
    LegacyFX Small Logo
    City Index Logo
    IQ Option Logo
    OctaFX Logo
    Forex.com Logo
    HYCM Logo
    AvaTrade logo
    ATFX Logo