Coinbase Employee Accused of Insider Trading – Files Motion to Dismiss
Last year U.S. Securities and Exchange Commission (SEC) filed charges against Coinbase’s former Product Manager for insider trading.
Ishan Wahi and his brother Nikhil filed a motion to dismiss the charges after their lawyers argued the tokens which the duo allegedly traded were not securities.
The motion states that SEC’s charges are “wrong” and the tokens traded by the brothers don’t fall under the definition of an “investment contract.”
Wahl’s lawyers argue that the brothers don’t have any obligations to buyers in the secondary market.
“None of the tokens were like stock. The very object of each token was to facilitate activity on the underlying platforms and, in so doing, enable each network to develop and grow.”
READ MORE: Bitcoin: Trader Warns of Imminent Correction
Nikhil Wahi was responsible for upcoming public listing announcements for cryptocurrency on Coinbase. According to SEC’s charges, the ex-employee shared confidential information with his brother and a third person.
They bought the tokens before their listings using anonymous accounts, which resulted in total gains of around $1.5 million. Last month Nikhil Wahi pleaded guilty and was sentenced to 10 months in prison.