• Nikhil Wahi, brother to former Coinbase product manager Ishan Wahi, has been sentenced to 10 months in prison following his guilty plea to insider trading of crypto tokens.
• Wahi was found to have profited off of insider information given to him by his brother, and must now return the $892,000 generated from those trades.
• Wahi will also be deported to India after his prison sentence is complete.
Nikhil Wahi, brother of former Coinbase product manager Ishan Wahi, has been handed a 10-month prison sentence after pleading guilty to insider trading of cryptocurrency tokens. In July, both brothers were arrested and accused of Ishan tipping his brother with information about upcoming Coinbase listings shortly before they were publicly announced. This allowed Nikhil to invest large sums of money into those tokens before other investors had a chance to.
The U.S. Attorney’s Office in San Francisco announced the sentence today, stating that Nikhil must return the $892,000 he generated in profits from the trades. He will also be deported to India following his sentence.
In court documents, Nikhil admitted that he used the insider information he received from his brother to buy tokens of digital currencies such as ZCash and Basic Attention Token, before they were listed on Coinbase. He then sold the tokens after the listing had been announced, resulting in a significant profit. He also acknowledged that he had “made a terrible mistake” in using the insider information.
Ishan Wahi, who was also arrested in connection to the case, is currently awaiting trial. If convicted, he could face up to 20 years in prison.
Nikhil’s sentence is a stern warning to those who would attempt to profit from insider trading. It serves as a reminder that the law does not tolerate those who seek to gain unfair advantages in the cryptocurrency markets. The U.S. Attorney’s Office has made it clear that those found guilty of insider trading or other forms of market manipulation will be prosecuted and severely punished.