• Coinbase has won an insider trading dispute, with the exchange awarded almost $470,000 in damages.
• The case involves a crypto trader who took tips from his brother who worked at Coinbase Global.
• Coinbase executive Vishal Gupta has left the company after serving as the head of exchange for almost three years.
Coinbase Wins Insider Trading Case
In a crypto industry first, the Coinbase exchange has been awarded damages after winning an insider trading dispute on April 11. U.S. District Judge Loretta Preska ordered Nikhil Wahi to pay almost $470,000 to Coinbase to cover its legal fees and expenses in pursuing the case against him.
The Case Against Wahi
Wahi had taken tips from his brother Ishan Wahi, who was a manager at Coinbase Global, enabling him to buy tokens before the inevitable pump that occurred when they were listed on exchanges. Consequently, he was sentenced to 10 months in prison and ordered to forfeit $892,500 in illegal trading gains.
SEC Case Against Ishan Wahi
Ishan Wahi is still currently in court with the Securities and Exchange Commission (SEC). He is arguing that the regulator cannot sue him because cryptocurrencies have not been legally categorized as securities yet. However, it is likely that both brothers will reach a settlement with the SEC soon enough.
Industry First For Crypto Exchange
This case marks an industry first where a crypto exchange has been awarded recompense for insider trading activities against one of its traders and former employees respectively. This serves as an example of how seriously exchanges are taking such cases now when compared to just a few years ago when such actions were relatively rare and unpunished by law enforcement agencies or other regulatory bodies like the SEC.
Vishal Gupta Leaves Coinbase
In related news, Coinbase executive Vishal Gupta has left the company after serving as the head of exchange for almost three years.