Former Coinbase product manager Ishan Wahi and his brother Nikhil Wahi have agreed to settle charges of insider trading brought against them by the United States Securities and Exchange Commission (SEC), the agency announced onMay 30.
The brothers were accused of using knowledge of nine crypto assets that would be listed on Coinbase in the future to purchase before listing. The SEC filed suit against them on July 21, 2022. That agency is now demanding disgorgement of ill-gotten gains with interest.
SEC’s Division of Enforcement director Gurbir S. Grewal said in a statement:
“While the technologies at issue in this case may be new, the conduct is not. […] The federal securities laws do not exempt crypto asset securities from the prohibition against insider trading, nor does the SEC.”
The settlement remains subject to court approval.
This is a developing story, and further information will be added as it becomes available.