The former Coinbase product manager charged in the first-ever cryptocurrency insider trading case in the US has been sentenced to two years in prison.
Ishan Wahi was found guilty of tipping off his brother Nikhil Wahi and their friend Sameer Raman about which tokens will be listed next on the Coinbase crypto exchange.
His conspirators then used the information to make profitable trades.
On Tuesday, Judge Loretta A. Preska of the United States District Court for the Southern District of New York sentenced Wahi to two years in prison for sharing confidential business information that enabled him and his co-conspirators to earn $1.5 million in illegal profits .
U.S. Attorney Damian Williams says Wahi, who also pleaded guilty to two counts of conspiracy to commit wire fraud, has betrayed the trust placed in him by his employer.
“Today’s verdict should be a strong signal to all participants in the cryptocurrency markets that the laws definitely apply to them. The Southern District of New York will hold those who engage in insider trading fully accountable, whether their illegal conduct takes place in the stock markets or the crypto asset market.
The plan came to light on April 12 after a popular Twitter account posted about an Ethereum (ETH) blockchain wallet buying thousands of dollars worth of crypto assets about 24 hours before they were listed in the Coinbase Asset Listing.
On May 15, Wahi bought a plane ticket to India in an attempt to leave the country shortly before he was due to appear in a Coinbase meeting about the list leak, but police prevented him from boarding the flight.
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