U.S. authorities have arrested three individuals on suspicion of conspiracy to commit financial fraud involving insider information using crypto, one of whom was a former Coinbase Global product manager.
In the announcement on Thursday US Attorney’s Office for the Southern District of New York In conjunction with the Federal Bureau of Investigation’s New York Field Office saidCoinbase has filed a lawsuit against former Coinbase Global product manager Ishan Wahi and brother Nikhil Wahi and colleague Sameer Ramani. Earn about $1.5 million trading 25 cryptocurrencies. different
According to official reports, Ishan received some information about the listing. As a Product Manager from August 2021 to May 2022, the period covers the token launch. which the US Attorney’s Office Allegedly, from June 2021 to April 2022, Ishan sent information related to the token launch date to his brother, or Ramani, to invest in cryptocurrencies. before the price skyrocketed by the indictment statedto$7,000 profit from Tribe (TRIBE) trading, $13,000 from Alchemix (ALCX), Gala (GALA), Ethereum Name Service (ENS) and Powerledger (POWR), and $900,000 from XYO.
The trio allegedly used at least 14 Coinbase insider trading schemes using multiple Ethereum blockchain wallets to make transfers and purchases. and use a centralized web trading account on behalf of others.
FBI Assistant Director Michael Driscoll said that although the allegations in this case involve transactions on crypto exchanges rather than traditional financial markets, they are still in the process. But it’s still trading using inside information as well.
Coinbase CEO Brian Armstrong previously said, “There is always the possibility that someone at Coinbase could leak inside information to outsiders engaging in illegal activities. And we will investigate and coordinate with external law firms if necessary.”
“If these investigations find that Coinbase employees are assisting or supporting any heinous activity, they will immediately terminate their employment and be referred to the relevant authorities. (which may be subject to criminal prosecution).”
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