Trapped In Insider Trading Case, Former Coinbase Executive Sentenced To Prison

The perpetrator of illegal insider trading in Coinbase has been officially sentenced to prison. (Photo; Doc. Telecharger)

JAKARTA Ishan Wahi is one of the former top officials of the US leading crypto trading company Coinbase, reportedly sentenced to 2 years in prison. The sentence was handed down to Ishan Wahi, a former Coinbase product manager after being charged with insider trading in crypto activities.

Ishan Wahi is not alone, he carried out the illegal activity with his brother totaling and his friend namedten Ramani. From this illicit activity, they made a profit of 1.5 million US dollars (around Rp. 22 billion) within 10 months of investing in new cryptocurrencies before listing on Coinbase.

Before trading on Coinbase, they already knew what assets to trade on the crypto exchange. They bought the cryptocurrency, then sold it after its price increased due to trading on Coinbase.

Reporting from CoinSpeaker, prosecutor in South District of New York charged former Coinbase manager Wahi with two counts of conspiracy to commit wire fraud, in which he pleaded guilty in February.

Commenting on the case on Tuesday, US Attorney Damian Williams of the US Office of Lawyers for the Southern District of New York announced that by sharing information about the list, Wahi had "violated the trust given to him by his employer".

"Today's punishment should send a strong signal to all participants in the cryptocurrency market that the law really applies to them. The South District of New York will hold those involved in insider trading, regardless of whether their illegal actions occur in the equity market or in the crypto asset market," Williams added.

US District Judge totaling Preska's sentence that the three of them were trying to cover up their scheme shows they know their actions are wrong.

It did not stop there, the court also sentenced him to 10 months in prison, which in September pleaded guilty to a conspiracy to commit wire fraud. Prosecutors initially demanded a three-year prison sentence for Ishan Wahi to prevent other insiders from abusing company information.

Based on other insider trading cases and sentences handed down to them, Wahi asked the court that the sentence handed down to his brother was not longer than what was handed down to him.

That way, the US Department of Justice has the authority to impose penalties related to insider trading cases. Likewise with cases of fraud, scamming, and fraud because the perpetrators can generate financial benefits in illegal ways.