- The SEC has agreed to settle insider trading charges filed against a former Coinbase manager and his brother.
- The duo was arrested for insider trading crypto assets last year and was convicted for multiple wire fraud charges.
- The settlement has left unanswered the question of whether the nine crypto tokens involved in the case were securities.
The U.S. Securities and Exchange Commission (SEC) has agreed to settle the insider trading charges filed against former Coinbase Manager Ishan Wahi and his brother Nikhil Wahi in the infamous crypto insider trading case from last year. The Wahi brothers were arrested for profiting from an insider trading scheme using material insider information from the American crypto exchange.
Wahis To Return Ill Gotten Gains From Coinbase
According to a press release from the SEC, the securities regulator and the Wahi brothers have agreed to settle the charges related to the insider trading scheme involving the listing of nine crypto tokens on Coinbase. Both the accused have agreed to be permanently enjoined from violating the Securities Exchange Act and return the ill-gotten gains from the crypto exchange, as well as the prejudgement interest. If approved by the Manhattan Federal Court, the SEC will not seek civil penalties against Ishan and Nikhil Wahi in light of their prison sentences.
The federal securities laws do not exempt crypto asset securities from the prohibition against insider trading, nor does the SEC. I am grateful to the SEC staff for successfully working to resolve this matter.”
Gurbir S. Grewal, Director of the SEC’s Division of Enforcement
The settlement between the securities regulator and the Wahi brothers brings the controversial court case to an end. The SEC claimed in its initial complaint that the nine crypto tokens involved in the case were securities. The settlement would leave the question regarding the tokens’ security status unanswered. Ishan Wahi was sentenced to two years in prison earlier this month. His brother is currently serving a 10-month prison sentence. The brothers were ordered to forfeit more than $920,000 obtained from their insider trading scheme.
