The prosecutors, as well as the Securities and Exchange Commission in civil charging documents, said Ishan Wahi, who at the time was part of a Coinbase team that listed assets on the exchange, passed on confidential information about when some cryptocurrency assets would be listed to his brother, Nikhil Wahi, and his brother’s friend Sammer Ramani.
Nikhil Wahi and Mr. Ramani used that information to buy the assets before Coinbase announced they’d be listed, the authorities said. After the announcement, the men sold the assets for a profit.
The alleged scheme came to light after Coinbase began an internal investigation in April in response to a post on Twitter about unusual trading.
Ishan Wahi booked a flight to India just before the company was to interview him in the investigation. The authorities said he had tipped off his brother and his brother’s friend about the interview as well. Mr. Wahi and his brother were arrested on Thursday morning in Seattle. Mr. Ramani remained at large, the authorities said.
Source: Ex-Coinbase Employee and 2 Others Charged With Insider Trading of Crypto Assets – The New York Times
