Insider Trading is a curse for crypto market.
Insider trading is essentially a scheme, where an employee of a company gets insights and information about the listing of a particular stock, or crypto asset incase of cryptocurrency market and shares it with his alliances to help them make huge profits out of such investments. Generally, companies prohibit the system of insider trading, although it is allowed in some circumstances.
The conduction of insider trading is a curse for crypto market because, then the investors participating in the scheme will have information about the asset beforehand and will adjust accordingly. This will rob off genuine opportunities from the true investor of the asset, as the price of the asset will get inflated by the actions of criminals.
Coinbase’s case of Insider trading.
Coinbase, a cryptocurrency exchange from US, is also supposedly one of the biggest crypto exchanges in terms of market capitalization. Such an organization now has got a black mark due to the news of Insider Trading that occurred in the company.
The convicts of the scheme Ishan Wahi, Nikhil Wahi and Sameer Ramani were arrested by the officials for committing Insider Trading.
Ishan Wahi, the prime convict, was part of Coinbase. He was, at the beginning the product manager in 2020, who was incidentally assigned with the listing team of Coinbase. In that role, Ishan was one of the key members in adding different crypto assets in the firm. In 2021, Ishan Wahi was also added to a private Coinbase messaging channel reserved for a small number Coinbase employees.
Ishan Wahi made all wrong choices and took illicit benefits of his positions in Coinbase. As he used to know about the listing of digital assets in the crypto exchange beforehand, he used to pass on the same information to his elder brother Nikhil Wahi and his friend Sameer Ramani. All of them reaped huge benefits from the so-called Insider Trading. They were able to gain around $1.5 Million from the illicit activity.
Writer’s Analysis:
Insider Trading in any kind of financial market is a curse, more so in digital asset market. The regulatory bodies have done well to nab Ishan and Nikhil, while Sameer is still at large. It disgusts to see when a market which is already coping with implosion must face such situations. But it is important to notice the efforts of the judicial system to bring the culprits to justice.
Look at the tweet related to the case below!
BREAKING: Former Coinbase Product Manager Ishan Wahi has been arrested for his alleged role in an insider trading scheme pic.twitter.com/Oac3ni1UDT
— Crypto India 🔑 (@CryptooIndia) July 21, 2022
