Former Coinbase top manager was arrested on suspicion of insider trade

Former Coinbase top manager was arrested on suspicion of insider trade

The US Coinbase Coinbase is arrested in the United States. He was accused of fraud using insider trade, the Ministry of Justice said.

According to the press release, law enforcement agencies also arrested his brother-Nihil Wahi-and charged Samir Ramani. All three faces up to 20 years in prison.

“[Suspects] entered into a conspiracy with the purpose of fraud using electronic communications and fraud with an insider trading scheme of cryptoactives by applying Coinbase confidential information about the planned listing on the exchange,” the publication said.

The prosecutor’s office noted that Ishan Vakhi had access to data related to the leaflet of cryptocurrencies on the platform. In particular, he knew when the company intends to make relevant public statements and open trade.

According to investigators, in the period from June 2021 to April 2022, the former exchange employee at least 14 times transferred this confidential information to his brother and Ramani. The latter, in turn, made transactions in order to make profit.

“Having received advice from Ishan Wahi, [other suspects] used anonymous Ethereum-pickers to purchase cryptocurrencies shortly before Coinbase publicly announced the placement plans or posted these assets on its platform. […] As a result of the insider trade scheme, they received realized and unrealized profit totaling at least $ 1.5 million, ”the press release said.

Investigators explained that in order to hide traces of criminal activity, the suspects used accounts on centralized exchanges that were registered on dummies.

In April 2022, the leader of Cobie discovered an address that invested “hundreds of thousands of dollars” in the tokens presented on the Coinbase Asset Listing list 24 hours before its publication.

After that, the operating director of Coinbase invited the Wahi to a “personal meeting”, the press release said. The latter confirmed the intention to appear, but the next day he tried to escape from the country – law enforcement officers who had already observed this prevented this.

The United States Securities and Exchange Commission also brought similar accusations to the suspect.

Recall that in May 2022, the analytical company Argus reported that a group of unknown investors received significant profits using insider information about upcoming Listing on cryptocurrency exchanges of Binance, Coinbase and FTX.

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