Security News > 2022 > July > Ex-Coinbase manager charged in first crypto insider-trading case
The U.S. Department of Justice has charged a former Coinbase manager and two co-conspirators with wire fraud conspiracy and scheme to commit insider trading in cryptocurrency assets.
Defendant Ishan Wahi, who worked as a product manager for the company, is accused of abusing his position and insider knowledge to make cryptocurrency investments that were almost guaranteed to rise in price.
"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," commented FBI's Assistant Director, Michael J. Driscoll.
Coinbase periodically adds new crypto assets on its platform to provide its users with fresh investment opportunities.
Ishan Wahi knew when Coinbase was planning to add new cryptocurrency assets before the company announced it publicly, so he coordinated with his co-conspirators to purchase large amounts in advance.
The trio purchased 25 crypto assets based on insider info from 14 new asset listing announcements disclosed from Coinbase to Ishan Wahi under strict confidentiality terms.