Brother of ex-Coinbase manager pleads guilty to insider trading charge

In what U.S. authorities have dubbed the first insider trading case involving cryptocurrencies, the brother of a former Coinbase Global Inc product manager entered a guilty plea to a wire fraud conspiracy charge on Monday.

Nikhil Wahi, 26, acknowledged making transactions using secret Coinbase information during a virtual court proceeding before U.S. District Judge Loretta Preska in Manhattan.

Ishan Wahi, the former product manager, allegedly sent secret information about new digital assets that Coinbase planned to allow customers trade to his brother and their mutual acquaintance Sameer Ramani.

The assets were reportedly acquired by Nikhil Wahi and Ramani using Ethereum blockchain wallets, and were allegedly transacted at least 14 times prior to Coinbase disclosures in June 2021 and April 2022.

According to prosecutors, these disclosures often increased the value of the assets and produced profits of at least $1.5 million.

Nikhil Wahi admitted to the court, "I understood that it was improper to obtain Coinbase's sensitive information and execute transactions based on that secret information.

He said that he was aware that by entering a guilty plea, he would ultimately be removed from the country and "lose all that I have fought for."

Last month, Nikhil Wahi entered a guilty plea; however, he then altered it after reaching a deal with the prosecution. In December, he will be sentenced.

Ishan Wahi has entered a not guilty plea and will next be in court on March 22. Ramani, who was charged as well, is missing.

One of the biggest cryptocurrency exchanges in the world is Coinbase, which claims to have disclosed its findings from an internal investigation into the trade with the authorities.