A former employee of the Coinbase cryptocurrency exchange pleaded guilty on Tuesday to insider trading, the first time a crypto industry insider has admitted to trying to profit from confidential information.
The case has been closely watched in the crypto industry since the charges against Ishan Wahi, a former Coinbase product manager, were filed in July in federal court in the Southern District of New York. By cracking down on insider trading at a major exchange, the federal authorities signaled a willingness to pursue the freewheeling crypto industry for the same type of malfeasance that occurs in traditional financial markets.
Mr. Wahi, who admitted to two counts of conspiracy to commit wire fraud, is scheduled to be sentenced on May 10. Each count carries a maximum sentence of 20 years in prison, though federal guidelines often result in shorter sentences.
Source: Ex-Coinbase Employee Pleads Guilty to Insider Trading – The New York Times