Recently Coinbase was making headline for various irrelevant reasons for the company. First the layoff of the company’s workforce, did the rounds, company’s financial problems in the market crash did rounds, and then recently, the most irrelevant of them all, Coinbase involved in insider trading made headlines. Sometimes, this is the negative side of being one of the topmost companies in the industry.
The insider trading news caught on like a wild fire as it spread across the world. Coinbase’s reputation took a big blow, to say the least. Let’s first see what the case was and how was Coinbase involved in the allegations of an insider trading.
Coinbase’s employees charged for Insider Trading!
Credits: Corporate Finance Institution
The U.S Department of Justice, went on to charge against the employees of the crypto giant Coinbase, for conducting insider trading. According to the allegations, the product manager of Coinbase, Ishan Wahi, shared sensitive and confidential information with his brother Nikhil Wahi and another accomplice Ramani and made use of the information. The information was about the crypto assets that were going to be listed in the crypto exchange. The allegations added that, three of them used the information and traded at at least 14 different listings at Coinbase, making a profit of around $1.5 Million Fortunately, for the company, only employees were charged and the company was not included in the charge.
But, as the recent news developed, it was surprising to note that Ishan Wahi, the primary convict, pleaded not guilty in the court, according to the reports submitted by Reuters.
Ishan Wahi pleads not Guilty – Reuters!
Former product manager of Coinbase, Ishan Wahi was accused for conducting insider trading and charges were filed against him. But, as Reuters reported, Ishan pleaded not guilty to the federal charges of insider trading. The turn around in the case, did grab a lot of attention of the people involved in the market.
The case also went on to have an added traction rate because SEC went on to name nine tokens as securities in the proceedings, but, did not charge the cryptocurrency exchange for the same.
According to the reports, DOJ reported this as the second instance, where insider trading was committed in a giant company such as Coinbase.
Writer’s Analysis:
According to me, until the further investigation is done and until concrete proofs have been collected against Ishan and his accomplice, it would be hard to conclude if they were actually committing a crime. But, the probe had to come from the authority, to make the investors believe that, the regulatory authority is in its place in the cryptocurrency market.
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