It appears that a Twitter user named Cobie lobbied the FBI to file an insider trading case. The United States Attorney’s Office for the Southern District of New York accuses a former Coinbase employee who allegedly told his brother and friend about assets to list on Coinbase, which they believe would lead to realized and unrealized gains of an amount. of $ 1.5 million. load.
This is the first case of insider trading involving cryptocurrency markets, US lawyer Damian Williams said in a statement.
In response, he booked a one-way ticket to New Delhi.
Ishan Wahi, the accused Coinbase employee, has been involved in the listing of new crypto assets on the Coinbases exchange. When Coinbase announces that a new token will go public, that token often increases in value, meaning the company has told employees to keep quiet about Coinbase’s listing plans. Wahi started working for Coinbase in October 2020. In August 2021 he gained access to a channel where Coinbase employees discussed the list of new projects with details such as exact announcement / launch dates and times.
According to the indictment, Wahi told his brother and friend which purchases to make just before these tokens were announced as listed by Coinbase. Nikhil Wahi and Sameer Ramani reportedly bought at least 25 assets ahead of at least 14 Coinbase listing announcements.
On April 12, Cobie tweeted: I found an ETH address that bought hundreds of thousands of dollars worth of tokens exclusively on Coinbase’s resource list about 24 hours before it was released, rofl. According to the indictment, Cobie tweeted about a wallet that belonged to Ramani. On April 13, Coinbase’s chief security officer responded to the tweet the company was investigating.
In May, Wahi received an email asking him to attend an in-person meeting as part of the Coinbases investigation. In response, he booked a one-way ticket to New Delhi, India. He also called and texted his brother and friend about the investigation. He was stopped by law enforcement before he could board his flight and was found to be carrying three large suitcases, seven electronic devices, two passports, several other pieces of identification, hundreds of dollars in U.S. currency, financial documents and other personal items. depending on the load.
Coinbase originally released a blog post in April, likely following his tweet, stating that the company’s goal is to level the playing field for all new assets created in cryptocurrency. In the post, Coinbase notes that its employees are aware of the fear that some market participants may use information from our listing process. It should also be noted that Coinbase employees may knowingly or unknowingly lose.
When I tweeted the “insider-addr” tweet, I had been tweeting for months about how Coinbase’s token lists / frontrunning / choices had become a huge mess.
Coinbase “Frontrunning” was widely known and recognized within CT.
Now Coinbase is playing the “hero” by catching the ~ diabolical scam ~! pic.twitter.com/3zBFXXkAvS
Cobie (@cobie) July 21, 2022
Coinbase updated the blog post today to make sure everyone knows that Coinbase doesn’t consider tokens as stocks because I think it’s important to them. Not really:
We know that the SEC filed a separate charge today for securities fraud related to this misconduct. The DOJ has not accused any securities fraud. None of the activities listed on our platform are headlines, and the SEC allegations are an unfortunate distraction from today’s law enforcement efforts.
So what have we learned here, my friends? First of all, don’t do illegal things. Second, don’t create them on a public blockchain where anyone can watch them. Third, Coinbase definitely reads Twitter cryptocurrencies. Fourth, the FBI. Fifth, if one of your employees is accused of computer fraud and conspiracy to commit computer fraud, the most important time to point out that tokens are not securities is right after the charges are cleared.