Coinbase receives $4’70’000 in restitution from insiders involved in alleged Crypto Trading Scheme

Coinbase receives $470,000 in restitution from insiders involved in alleged crypto trading scheme

Crypto News:

Coinbase has received $470,000 in restitution from Nikhil and Ishan Wahi in relation to their alleged involvement in an insider trading scheme. The payment will cover five grand jury subpoena requests and lost wages of employees who had to focus on the Department of Justice’s investigation into the matter.

Coinbase’s lawyers had requested reimbursement under the Mandatory Victim Restitution Act, which seeks to compensate victims for lost income and expenses resulting from offenses such as wire fraud.

The Wahi brothers were accused of trading over 20 cryptocurrencies in a scheme that operated from June 2021 to April 2022, netting over $1 million in profits. Nikhil was sentenced to 10 months in prison in January, while Ishan is set to be sentenced on May 9.

The two are also nearing a settlement agreement with the SEC, which claims that the assets traded were securities. Both Coinbase and the Wahi brothers have denied this claim.

The restitution payment was made as part of Nikhil’s imprisonment. He will make installment payments towards the remaining amount through the Bureau of Prison Inmate Financial Responsibility Plan.

Any unpaid amount upon release from prison will be paid in monthly installments of at least 10 percent of his gross income on the 15th day of each month.

The SEC has until June 15 to review and discuss the settlement agreement with the Wahi brothers. They will have until July 15 to reply. Meanwhile, Coinbase continues to cooperate with investigations into insider trading and other illegal activities in the crypto industry.

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