The crypto exchange platform, Coinbase, wins the insider trading case against Wahi brothers. Nikhil Wahi, the brother of a former Coinbase employee, Ishan Wahi, has agreed to pay Coinbase roughly $470,000 in restitution.
Nikhil Wahi, will start making restitution payments while serving time in prison regarding the insider trading case involving cryptocurrency, according to a New York District Court filing signed on April 6 and made public on April 10.
Insider trading in the age of cryptocurrencies has risen in spite of being so safe and secure. Lately, Binance was also accused of insider trading by the Coinbase Director.
Nikhil, who entered a guilty plea to initiating trades based on secret information obtained from his brother in September 2022, is currently incarcerated for 10 months after being found guilty of wire fraud conspiracy charges on January 10.
A court document read, “While serving the term of the imprisonment, the defendant shall make installment payments toward restitution and may do so through the Bureau of Prison Inmate Financial Responsibility Plan. Any unpaid amount upon release from prison will be paid in installments of at least 10 percent of the defendant’s gross income on the 15th day of each month,”
Prosecutors claimed Ishan knew when the exchange would publish new cryptocurrencies because of his position at Coinbase. Prosecutors said that after the mentioned cryptocurrencies were posted, their prices generally increased, resulting in a profit for Nikhil of $892,500.
While criticizing the defendants’ actions, Coinbase stated in an amicus brief filed on March 13 that the SEC lacked the authority to launch the lawsuit because the disputed tokens failed the Howey test, a standard used by American courts to determine whether an asset is a security.
Prosecutors claimed Ishan told his brother Nikhil and a friend of theirs when the exchange would be selling new coins.
