NEW YORK — The U.S. Securities and Exchange Commission is nearing a settlement with a former Coinbase Global Inc product manager in a landmark case of insider trading involving cryptocurrency, according to a court filing this week.
The SEC has reached “an agreement in principle” with Ishan Wahi to resolve its claims against him, the agency said in a court document filed on Monday.
Financial Post Top Stories
Sign up to receive the daily top stories from the Financial Post, a division of Postmedia Network Inc.
By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc. You may unsubscribe any time by clicking on the unsubscribe link at the bottom of our emails or any newsletter. Postmedia Network Inc. | 365 Bloor Street East, Toronto, Ontario, M4W 3L4 | 416-383-2300
Regulators have accused Wahi, his brother Nikhil Wahi and a close friend of reaping at least $1.1 million in illicit profits by using nonpublic information related to crypto listing announcements he obtained as an employee of Coinbase.
Advertisement 2
THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY
Subscribe now to read the latest news in your city and across Canada.
- Unlimited online access to articles from across Canada with one account
- Get exclusive access to the National Post ePaper, an electronic replica of the print edition that you can share, download and comment on
- Enjoy insights and behind-the-scenes analysis from our award-winning journalists
- Support local journalists and the next generation of journalists
- Daily puzzles including the New York Times Crossword
SUBSCRIBE TO UNLOCK MORE ARTICLES
Subscribe now to read the latest news in your city and across Canada.
- Unlimited online access to articles from across Canada with one account
- Get exclusive access to the National Post ePaper, an electronic replica of the print edition that you can share, download and comment on
- Enjoy insights and behind-the-scenes analysis from our award-winning journalists
- Support local journalists and the next generation of journalists
- Daily puzzles including the New York Times Crossword
REGISTER TO UNLOCK MORE ARTICLES
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account
- Share your thoughts and join the conversation in the comments
- Enjoy additional articles per month
- Get email updates from your favourite authors
The case has drawn significant attention as one of the latest actions by a regulator that has grown increasingly aggressive on policing the crypto industry.
Last month, a trade group urged a judge to dismiss the matter, noting it could have wide-ranging consequences for the digital asset industry and harm crypto investors.
In its Monday filing, the SEC said it is also engaged in “good faith discussions” with Nikhil Wahi that may resolve the claims against him.
The Wahi brothers have both pleaded guilty to parallel criminal charges. In February, they asked a judge in Seattle to dismiss the SEC’s case, saying the charges represent an “abuse of power.”
Any settlement recommended by staff will need to be reviewed and approved by the SEC’s commissioners, “a process that can take a a number of weeks,” the regulator said.
A lawyer for the Ishan Wahi and a spokesperson for the SEC both declined to comment. A lawyer for Nikhil Wahi did not respond immediately to requests for comment. (Reporting by Chris Prentice Editing by Marguerita Choy)
