Tags: insider trading

Ishan Wahi was sentenced to two years for his role in a conspiracy to trade with insider information on Coinbase.

Former Coinbase Manager Sentenced to Two Years in Insider Trading Case

(Chesnot/Getty Images)

(Opensea, modified by CoinDesk)

The brother of a former Coinbase employee allegedly profited from an insider trading scheme and now has 20 years to repay the funds.

The exchange denies that any of the tokens former Coinbase manager Ishan Wahi inside-traded with associates were securities because Coinbase doesn’t list securities – but it would like to if the SEC gave it proper rules and guidance.

The crypto lobbying group is arguing that the SEC is engaging in “absentee enforcement” because the creators of the nine tokens, that are at the center of the insider trading case, are not linked to the case.

The U.S. agency’s insider-trading case against a former Coinbase manager hinged on nine tokens it classified as securities, but the ex-employee’s lawyers are saying it’s not so.

Wahi had previously pleaded not guilty to federal charges of insider trading.