The Wahi brothers, Ishan and Nikhil, have reached a settlement with the SEC over charges of insider trading involving crypto asset securities.
Former Coinbase Product Manager Reaches Settlement with SEC
The Wahi brothers, Ishan and Nikhil, have reached a settlement with the SEC over charges of insider trading involving crypto asset securities. The SEC alleged that Ishan Wahi, a former product manager at Coinbase, used his access to confidential information about upcoming listings of nine crypto assets on the Coinbase platform to trade them before the public announcements. His brother Nikhil Wahi also participated in the scheme and benefited from the illegal trades.
The SEC filed a lawsuit against the Wahi brothers on July 21, 2022, accusing them of violating Section 10(b) of the Securities Exchange Act and Rule 10b-5. The Wahi brothers agreed to pay disgorgement of their ill-gotten gains, plus prejudgment interest. However, the SEC did not seek civil penalties in light of the Wahi brothers' prison sentences in a parallel criminal case. The settlement is subject to court approval.
The SEC's director of enforcement, Gurbir S. Grewal, stated that the case shows that the SEC does not tolerate insider trading in any form, including crypto asset securities.