Coinbase is making headlines in the wrong ways.
Recently, Coinbase was in the news for a variety of unrelated issues about Ishan Wahi. The company’s staff layoffs and financial issues after the market fall first garnered headlines, followed lately by the most irrelevant of all of them: Coinbase’s involvement in insider trading.
This is occasionally the drawback of working for one of the best organisations in the sector.
The information of insider trading spread like wildfire over the globe. To put it mildly, Coinbase’s reputation took a serious hit. Let’s first examine the facts of the case and how Coinbase was connected to the claims of insider trading.
Employees of Coinbase were accused with insider trading!
The US Department of Justice then filed charges against Coinbase workers for engaging in insider trading. The claims state that Ishan Wahi, the product manager at Coinbase, used information that he shared with his brother Nikhil Wahi and another conspirator, Ramani, as well as other individuals.
The details related to the cryptocurrency assets that will be posted on the cryptocurrency exchange. The claims further claimed that three of them traded at least 14 separate Coinbase listings using the data, earning a profit of almost $1.5 million. For the corporation’s benefit, only the employees were charged; the company itself was not.
However, when the current news spread, it was unexpected to learn that Ishan Wahi, the main prisoner, had entered a not-guilty plea in front of the judge.
Ishan Wahi says he’s innocent – Reuters!
Ishan Wahi, a former product manager at Coinbase, was charged with insider trading after being suspected of doing so. Ishan, however, entered a not guilty plea to the federal insider trading accusations, according to Reuters. The case’s turnaround did draw a lot of interest from those working in the market.
The lawsuit gained further impetus as a result of the SEC’s designation of nine tokens as securities in the proceedings without charging the cryptocurrency exchange for it.
The sources state that the DOJ described this as the second incident of insider trading occurring in a large corporation like Coinbase.
In my opinion, it would be difficult to determine if Ishan and his accomplice were genuinely committing a crime until additional inquiry is completed and until tangible evidence has been gathered against them. However, the authority had to conduct the investigation in order to convince investors that the regulating body is acting appropriately in the bitcoin market.