Coinbase employee mired in first insider trading case involving cryptocurrency

The brother of a former Coinbase Global Inc product manager pleaded guilty on Monday to a wire fraud conspiracy charge, in what US prosecutors have called the first insider trading case involving cryptocurrency.

Nikhil Wahi, 26, admitted during a virtual court hearing before US district judge Loretta Preska in Manhattan that he made trades based on confidential Coinbase information.

Prosecutors say Ishan Wahi, the former product manager, shared confidential information with his brother and their friend Sameer Ramani about new digital assets Coinbase was planning to let users trade.

Nikhil Wahi and Ramani then allegedly used ethereum blockchain wallets to acquire the assets and traded at least 14 times before Coinbase announcements in June 2021 and April 2022.

Those announcements typically caused the assets to rise in value and generated at least $1.5m in gains, prosecutors said.

Nikhil Wahi had pleaded guilty last month, but changed his plea through an agreement with prosecutors. His sentencing will be in December.

Ishan Wahi has pleaded not guilty and is next scheduled to appear in court on 22 March 2023. Ramani, who was also charged, is at large.