The court found not guilty the former employee of the Coinbase cryptocurrency exchange accused of insider trading.
A federal court in Manhattan found not guilty ex-Coinbase employee Ishan Wahi, whom the US Department accused Justice of insider trading. About it writes Reuters concerning the court order.
It is reported that the judge’s decision may have been influenced by the fact that the tokens that Wahi traded before listing on Coinbase do not (yet) belong to the class of securities. Moreover, Vahi’s defense claims that the cryptocurrency exchange conducted testing on the turnover of tokens even before their listing, which means that information about them was not confidential.
Plaintiffs think otherwise. The prosecutor noted that the information about the listing tokens was not public; their appearance on Coinbase was confidential.
Even though the court considered the allegations of fraud against Wahi untenable, the ex-Coinbase employee and his accomplices will still have to appear in court on March 22, 2023, but they are already in the case against the US Securities and Exchange Commission (SEC).
The exchange regulator believes that Wahi traded assets that belong to the class of securities. We are talking about AMP, RLY, DDX, XYO, RGT, LCX, POWR, DFX, and KROM tokens.
Recall, the US Department of Justice found out that Ishan Wahi shared with his brother and a friend insider information about the imminent listing of cryptocurrencies on Coinbase. Regulatory officials believe Ishan Wahi’s associates made $1.5 million from insider trading. Wahi was detained by law enforcement at an airport in Washington state on a flight to India after Coinbase’s senior security officer called him in for an interview.