Former Coinbase employee confesses to exchange fraud and cryptocurrency fraud

The brother of an ex-employee of the cryptocurrency exchange Coinbase has confessed to insider trading, thus confirming his relative’s involvement.

As it became known, Nikhil Wahi, the brother of former Coinbase product manager Ishaan Wahi, pleaded guilty to conspiracy to commit cryptocurrency fraud, including insider trading. «Less than two months after he was indicted, Nikhil Wahi admitted in court that he traded digital assets based on confidential Coinbase information obtained from his brother,» summarized Damien Williams, a spokesman for the U.S. Attorney’s Office.

Nikhil Wahi’s confession is the first time in the history of cryptocurrency crimes that an accused of insider trading has pleaded guilty. Currently, the offender faces up to 20 years in prison, and it is not known what punishment awaits his brother, an accomplice, but Ishaan Wahi himself has not yet pleaded guilty and refused to cooperate with the investigation. In early August, the ex-Coinbase employee reported that he had filed a motion to dismiss the case in the Federal Court of Manhattan. Wahi’s lawyer, David Miller, then emphasized that according to American law, insider trading includes securities or commodities, and cryptocurrency tokens are not included in this list.

In late July, the U.S. Securities and Exchange Commission and the New York prosecutor’s office arrested Ishaan Wahi, a former product manager at Coinbase. According to law enforcement agencies, former Coinbase employee Ishaan Wahi disclosed confidential Coinbase information to his brother and friend Nikhil Wahi and Samir Ramini. The suspect provided illegal financial advice to his accomplices and recommended when and which tokens to buy.