• Nikhil Wahi, brother of former Coinbase product manager Ishan Wahi, has been sentenced to 10 months in prison for insider trading of crypto tokens.
• The accomplice is required to return the $892,000 he profited from the trades.
• In July, both Nikhil and Ishan Wahi were arrested on allegations that the latter tipped his brother with information about upcoming Coinbase listings.
Nikhil Wahi, brother of former Coinbase product manager Ishan Wahi, has been sentenced to ten months in prison following his guilty plea in an insider trading case involving cryptocurrency tokens. Wahi was accused of leveraging the familial connection between him and his brother to buy cryptocurrency tokens prior to their public announcement on the Coinbase platform. The profits he made from these trades amounted to a total of $892,000, which he will now be required to return.
The investigation began in July of this year, when both Nikhil and Ishan Wahi were arrested on suspicion of Ishan tipping off his brother with information about upcoming Coinbase listings. This allowed Nikhil to purchase large amounts of the tokens before they were publicly announced, thereby earning huge profits when their prices rose.
U.S. District Judge William Alsup, who heard the case, said that the insider trading was a “terrible mistake” on Nikhil’s part. He noted that while Nikhil had no prior criminal record, he had taken advantage of his brother’s position in order to make a quick profit.
Nikhil’s sentence includes 10 months in prison, followed by deportation to India. He was also handed down a $50,000 fine, in addition to the amount of profits he must return. Ishan was not charged with any crime, but he was asked to testify in his brother’s case.
The combined actions of Nikhil and Ishan demonstrate the importance of abiding by the law and adhering to ethical standards when dealing with digital assets. Insider trading is an illegal and unethical practice, and those found guilty of such activities are subject to severe punishment. The Wahi brothers’ case serves as a reminder of the consequences of such actions, and should be a warning for other investors who may be tempted to engage in similar activities.