According to a Bloomberg report, Ishan Wahi, a former product manager at Coinbase, was sentenced to two years in prison by the Department of Justice (DOJ) for insider trading in the cryptocurrency sector.
Wahi was accused of sharing confidential information about upcoming cryptocurrency listings with his brother and another individual, resulting in illicit gains of over US$ 1 million. This is the second case of insider trading, prosecuted by the DOJ in the cryptocurrency industry.
Nate Chastain, a former head of product at OpenSea, was also found guilty of money laundering and wire fraud for using privileged information to profit from NFT trading. Chastain faces a maximum sentence of 40 years, while Nikhil Wahi, Ishan Wahi’s brother, has been sentenced to 10 months in prison for a conspiracy to commit wire fraud.
Despite Ishan Wahi’s defense team seeking a sentence not exceeding 10 months, he was given a two-year prison term, which is still much shorter than the maximum sentence of 60 years for his involvement in illegal activities. This has brought renewed attention to the problem of insider trading in the cryptocurrency industry and its consequences.