- U.S. District Judge Loretta Preska ruled that Nikhil Wahi must compensate Coinbase.
- Ishan Wahi, the brother, pled guilty as well; he was an executive at Coinbase.
It was announced on April 11 after Nikhil Wahi had pleaded guilty in a Manhattan court, that Coinbase had been awarded about $470,000 in damages. A crypto trader in this instance followed the advice given to him by his brother. The latter was employed by Coinbase Global.
U.S. District Judge Loretta Preska ruled that Nikhil Wahi must compensate Coinbase for its legal fees and costs. Wahi reportedly spent 10 months in jail and had to give up $892,500 in unlawful trading profits.
Ishan Wahi, the brother, pled guilty as well; he was an executive at Coinbase. His sibling would benefit from his knowledge of upcoming token listings. And would be able to purchase before the inevitable pump.
Commission Lacking Jurisdiction Claim
Ishan Wahi’s ongoing legal battle with the SEC centers on his claim that the commission lacks jurisdiction over him since cryptocurrencies are not yet considered securities under existing law. However, they will probably work out a compromise with the SEC.
This is the first time a crypto exchange has been compensated for insider trading, and it might set a precedent for similar cases in the future. Additionally, after nearly three years on the job as head of exchange at Coinbase, executive Vishal Gupta has decided to leave the business.
Coinbase’s staking services are the latest target of the regulator, who claims the company is illegally giving returns on unregistered securities. Following the Ethereum Shapella update, experts anticipate a gain in Coinbase stock price because of an increase in staking deposits. The huge fee the exchange collects on ETH staking profits is great for the company’s financial line.
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