First Penalty For Insider Trading In Bitcoin Markets And Cryptocurrencies
Are cryptocurrencies real money? This question has been asked very often. But for the first time in legal terms, cryptocurrency was treated as "real currency" and more than one person was penalized.
Ishan Wahi, a former v product manager, shared information about cryptocurrencies with his brother Nikhil Wahi, who published the information on his website. After it was determined that Nikhil Wahi made around $900,000 from this information, Ishan Wahi was sentenced to 10 months in prison. “The decision clearly showed that cryptocurrency markets are not exempt from the law,” the prosecutor said, noting that this is the first example of insider trading in the cryptocurrency market.
Are Cryptocurrencies Officially Recognized As Currencies?
If we analyze this issue in the context of this decision, we can see that it is a very controversial topic. Nikhil Wahi, the brother of the former product manager of Coinbase Global, was sentenced to 10 months in prison. According to the U.S. Attorney’s Office, this is the first insider trading conviction in the bitcoin industry.
According to a statement from the U.S. Attorney’s Office in Manhattan, Nikhil Wahi and his friend Sameer Ramani obtained confidential information from Coinbase through his brother Ishan Wahi and profited by trading in the cryptocurrency market.
The alleged confidential information was related to the cryptocurrency that Coinbase wanted to list. When listed on large websites like Coinbase, modest cryptocurrencies can see a rapid rise.
He Wanted To Pay Off His Family’s Debts
Authorities have requested a prison sentence of 10 to 16 months for Nikhil Wahi, who earned around $900,000 this way. According to Wahi’s lawyers, who requested that Wahi not be imprisoned, Wahi wanted to pay off his debt to his family, who had paid for his university education.
Cryptocurrencies Cannot Be Independent Of The Law
Prosecutor Damian Williams said this is the first example of misuse of information in the cryptocurrency market and said, “This ruling makes clear that cryptocurrency markets are not exempt from the law. Illegal “insider trading” will have a tangible impact wherever and however it is conducted,” he said.
About 1,000 Employees Will Be Laid Off
Although the decision has no legal or financial consequences for Coinbase, it hurts the image of the platform, which has fallen on hard times. In the past year, Coinbase’s loss-making shares have lost 82 percent.
Recently, the company announced that it will lay off 950 employees, representing 20 percent of its total workforce. This was Coinbase’s third layoff decision in the last year.
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