Ishan Wahi, a former Coinbase product manager, was arrested by US authorities on Thursday (21). The charge is that Wahi allegedly passed on inside information about the listing of new cryptocurrencies and tokens on the exchange.
Due to the high reputation of Coinbase, listed on the stock exchange, such assets tend to rise after listing. Therefore, these people would make money illegally.
In the past, even the largest US newspaper has accused Coinbase of insider trading. At the time, however, there were no indications as to who could participate in the scheme.
Former Coinbase Product Manager Arrested
According to information from the US CVM, Ishan Wahi, a former Coinbase product manager, is said to have passed on privileged information to his brother, Nikhil Wahi, as well as to his friend Sameer Ramini.
“Nikhil Wahi and Ramani reportedly bought at least 25 ‘crypto assets’, including at least nine securities, and then sold them shortly after the announcements. [de listagem] making a profit.”
Knowing which tokens would be listed on Coinbase, those involved could make more than $1.1 million in profits between June 2021 and April 2022 alone.
The reason behind the almost certain appreciation of such assets is the reputation of the publicly traded exchange Coinbase, which increases the exposure of every token listed on the exchange. Which as a result also increases trading volume and liquidity.
All three involved were criminally charged this Thursday (21). However, the SEC notes that the investigation will continue. So it is possible that more cases will be solved in the future.
Coinbase in bad shape
With its shares 78% below their original value when it made its IPO, Coinbase is struggling not to lose customers to its biggest competitors, FTX and Binance.
After laying off more than 1,100 employees and ending its affiliate program this week, the exchange is trying to cut spending to survive the crypto bear market. However, other companies are taking advantage of the weakness to grow.
Finally, while the value of its stock has risen 36% in the past 5 days, with the rise of Bitcoin, news of the arrest of its former product director is ruining the company’s reputation.
Source: Live Coins
John Cameron is a journalist at The Nation View specializing in world news and current events, particularly in international politics and diplomacy. With expertise in international relations, he covers a range of topics including conflicts, politics and economic trends.
