Per a press release from the U.S. Department Of Justice (DoJ), a former Coinbase employee has been arrested for his alleged participation in an inside trading scheme. The main suspect was identified as Ishan Wahi, former product manager at this company.
Related Reading | Blockchain.com Renders A Quarter Of Its Workforce Jobless As Bear Market Bites
Authorities also identified Nikhil Wahi, Ishan’s brother, and Sameer Ramani. The suspects have been charged with wire fraud and fraud conspiracy for allegedly profiting from Coinbase’s confidential information regarding new cryptocurrency listing on its platforms.
Two of the suspect were apprehended, the Wahi brothers, while Ramani remains at large. Ishan Wahi was captured on May 16, 2022, while attempting to take a flight to India following internal investigations from Coinbase.
The crypto exchange launched a probe into its internal listing process following a tweet from a popular crypto account. On April 12th, crypto influencer Cobie posted the following via Twitter:
Found an ETH address that bought hundreds of thousands of dollars of tokens exclusively featured in the Coinbase Asset Listing post about 24 hours before it was published, rofl.
According to the DoJ press release, this tweet was directly linked to the Coinbase investigation which led to the arrest of two of the suspects. U.S. Attorney Damian Williams said the following on the case, and his office’s efforts to apprehend criminals in the nascent asset class:
Today’s charges are a further reminder that Web3 is not a law-free zone. Just last month, I announced the first ever insider trading case involving NFTs, and today I announce the first ever insider trading case involving cryptocurrency markets. Our message with these charges is clear: fraud is fraud is fraud, whether it occurs on the blockchain or on Wall Street. And the Southern District of New York will continue to be relentless in bringing fraudsters to justice, wherever we may find them (…).
Ishan Wahi allegedly used his position as a product manager and a key member of the Coinbase listing process to tip off his brother and Ramani. The suspect supposedly earned over $1.5 million from their inside trading scheme from June 2021 to April 2022, when they were exposed by Cobie.
The release claims the suspect placed long positions on centralized exchanges, using accounts held in the name of others, before Coinbase’s listing announcements. The cryptocurrencies rallied after their listing and Nikhil Wahi and Ramani closed their positions for a profit.
Related Reading | New Reason For The Market Crash Revealed: Tesla Sold 75% Of Its Bitcoin In Q2
Authorities estimate that the suspects used this modus operandi to trade over 14 public listing announcements to benefit from over 25 new crypto trading pairs on the exchange platform. FBI Assistant Director Michael Driscoll claimed the government agency is determined to “protect” the nascent and legacy markets. Driscoll added:
Although the allegations in this case relate to transactions made in a crypto exchange – rather than a more traditional financial market – they still constitute insider trading. As alleged, the defendants made illegal trades in at least 25 different crypto assets and realized ill-gotten gains totaling approximately $1.5 million (…).
A surge in deceptive XRP airdrop ads, featuring Ripple CEO Brad Garlinghouse, has flooded online platforms. The ads, prominently seen on YouTube and X (formerly Twitter), employ sophisticated artificial intelligence to fabricate Garlinghouse's endorsement, enticing users to send XRP for a promised airdrop. Despite YouTube's safeguards, these scams persist, gaining traction on X.
JoyThe funding structure includes rapid grants (below 20,000 mkUSD), community grants (20,000-100,000 mkUSD), and large grants (exceeding 100,000 mkUSD).
AlexSouth Korea Excludes Non-Custodial Virtual Asset Wallets from Overseas Financial Account Declarations
AlexA recent study unveils a surprising trend in Norway, where less than 1 in 10 individuals show interest in investing in cryptocurrencies. Intriguingly, men are twice as likely to consider crypto investments compared to women.
JoyBoth Solscan and Etherscan share a vision of offering neutral and equitable access to blockchain data, emphasising transparency and fairness in the blockchain space.
AlexMATIC Polygon's promising performance hints at a potential surge towards $1.20, buoyed by industry momentum and bullish projections. Analysts and patterns foresee a significant upward trajectory, fostering anticipation for Polygon's continued ascent.
JoyCEO Bill Lou lost $125,000 in stETH to a deceptive LFG token airdrop scam via a phishing attack. The incident underscores the rampant threat of phishing in crypto, urging users to stay vigilant and verify sources for secure transactions.
JoyRipple Labs is spearheading a transformation in global IT payments, with blockchain technology at the helm, promising swifter, more secure transactions.
BrianMicroStrategy's Saylor is selling company shares worth $216 million to increase his Bitcoin holdings, while maintaining a significant stake in the company.
KikyoCryptocurrency-based gambling on the outcome of Taiwan's presidential election has surged, attracting nearly $700,000 in wagers. Authorities are cracking down on illegal activities, emphasizing the importance of avoiding legal violations during this sensitive election period.
Joy