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Former Coinbase Employee Accused Of Insider Trading Nears Settlement With SEC

Press Releases Crypto News Bitcoinist Former Coinbase Employee Accused Of Insider Trading Nears Settlement With SEC

A month after pleading guilty to a case involving the insider trading of cryptocurrencies on the Coinbase exchange, a former employee seems to be near a settlement deal with the US Securities and Exchange Commission (SEC).

This comes amid Coinbase ongoing situation with the SEC. Last week, the exchange received a Wells notice – a letter suggesting a looming lawsuit for securities law violation – from the same US-based regulator.

Ex-Employee And The SEC Nears Deal

Ishan Wahi, who was once a product manager at Coinbase, is still in a legal battle with the SEC following the regulator charges against him for allegedly committing insider trading of cryptocurrencies on the platform. Wahi was accused alongside his brother Nikhil Wahi and a close friend.

According to a report from Reuters citing a court document from the agency filed on March 3, “The SEC has reached an agreement in principle with Ishan Wahi to resolve its claims against him.” The regulator noted in the Monday filing that it is open to “good faith discussion with Nikhil Wahi to end the ongoing case.

Notably, Wahi’s case is the first time a crypto industry executive acknowledges using confidential information for self-benefit. According to the SEC filing, Wahi and his friend illegally profited by roughly $1.1 million from using “sensitive” information concerning crypto listing announcements during his tenure at Coinbase.

Damian Williams, the U.S. attorney for the Southern District of New York, noted in a statement:

Whether it occurs in the equity markets or the crypto markets, stealing confidential business information for your own personal profit or the profit of others is a serious federal crime.

Given the weight of the case, the SEC said the settlement would need a review and finalization from the higher authorities like the SEC Commissioners. The regulator added, “a process that can take a number of weeks.”