Key Highlights :
1. The brother of a former Coinbase employee has agreed to pay the cryptocurrency exchange nearly $470,000 for his role in an insider trading scheme.
2. According to a New York District Court filing signed on April 6 and made public on April 10, Nikhil Wahi — brother of former Coinbase product manager Ishan Wahi — will be required to begin making restitution payments while serving time in prison in what is believed to be the first insider trading case involving crypto.
3. The amount must be paid in full within 20 years of Nikhil’s release from prison and represents the amount Coinbase spent on legal services relating to the Department of Justice’s investigation.
4. In September 2022 Nikhil pleaded guilty to initiating trades based on confidential information obtained from his brother and is currently serving 10 months in prison for wire fraud conspiracy charges after being sentenced on Jan. 10.
5. As a result of our investigation we identified 3 suspects and provided this information to law enforcement. One person was a Coinbase employee who we terminated. Today, the DOJ has criminally charged this former employee and the two other individuals for this abusive conduct.
The brother of a former Coinbase employee allegedly profited from an insider trading scheme and now has 20 years to repay the funds. According to a report from The Wall Street Journal, the brother, who is not named in the report, is alleged to have profited from a scheme in which he traded on information he obtained from his brother, who worked at Coinbase at the time. The brother is now reportedly required to repay the funds he allegedly gained from the scheme, which is estimated to be worth around $8 million. Coinbase has not commented on the report.
Continue Reading at Source : cointelegraph