The U.S. Securities and Exchange Commission seems ready to settle the landmark insider trading case involving Ishan Wahi, a former product manager at Coinbase, and his brother, Nikhil Wahi.
The information was included in a consolidated court document presented on Monday.
The report claims: “Ishan Wahi and the commission have agreed to address all of the exchange’s claims. To resolve the allegations against him, Nikhil Wahi and the SEC have engaged in good faith discussions.”
Ishan Wahi attempted to have the commission’s civil complaints against him dismissed before pleading guilty in February to criminal wire fraud charges brought by the Justice Department.
The agency and the defendants are asking to extend the April 6 deadline until the summer to finalize the settlement. The four independent commissioners must approve everything of the security exchange commission, including Chair Gary Gensler, who was appointed politically.
SEC’s Agreement With Ishan Wahi
Reuters states, “The exchange has reached a deal in principle with Ishan Wahi to resolve its claims against him,” citing a court document submitted by the agency on March 3. In a document made on Monday, the regulator indicated its willingness to engage in a “good faith conversation with Nikhil Wahi to settle the continuing issue.”
To our knowledge, Wahi’s case might be the first time a top executive in the cryptocurrency business has admitted to misusing proprietary information for personal gain. The security exchange commission petition claims that during Wahi’s time at Coinbase, he and a friend made over $1.1 million in illicit profits by illegally trading on “sensitive” information regarding crypto listing announcements.
The U.S. attorney for New York’s Southern District, Damian Williams, said in a statement:
“Whether it occurs in the equity or crypto markets, stealing confidential business information for your profit or the profit of others is a serious federal crime.”
The commission noted that the settlement was so significant that it would require approval by the Commissioners. A process that “may take a couple of weeks,” the regulator added.
Wahi’s case is just one of many that the SEC is handling as it has been cracking down on a wide range of sectors. The organization indicted Beaxy, a different cryptocurrency platform, and his business, Beaxy Digital Ltd., last week on suspicion of stealing $900,000. It is claimed that the funds were utilized for personal needs and gambling.
Last month. The SEC charged Justin Sun, the founder of Tron, with fraud and other violations of the securities laws and sent Coinbase with a Wells notice. Gary Gensler, the chairman of the security exchange commission will soon defend the agency’s actions before the US Congress, according to Bitcoinist.
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