The first cryptocurrency insider trading scheme, in which two Indian brothers and their Indian American friend made illicit profits totaling over a million dollars, has been charged in the US.
Both Sameer Ramani, 33, and Ishan Wahi, 32, are citizens of India and reside in Seattle, while Nikhil Wahi, 26, resides in Houston.
Federal Bureau of Investigation Assistant Director-in-Charge Michael J. Driscoll and United States Attorney Damian Williams announced the arrests on Thursday, Indictment against the Wahi brothers and Ramani for wire fraud conspiracy and wire fraud was unsealed in connection with an insider trading scheme by using Coinbase information about crypto assets that were slated to be listed on Coinbase’s exchanges to commit insider trading in cryptocurrency assets.
Additionally, the SEC charged the three men with insider trading.
United States District Court for the Western District of Washington will hear the case against the Wahi brothers. They were arrested in Seattle on Thursday morning.
It appears Ramani is currently in India, according to the SEC complaint.
Ishan Wahi and Ramani attended the University of Texas at Austin together, and they remain close friends today.
Prosecutors said that the defendants made illegal trades in at least 25 different crypto assets and realized approximately USD 1.5 million in ill-gotten gains as a result of the cryptocurrency insider trading tipping scheme.
Web3 is not a lawless zone, as today’s charges illustrate. Today I announce the first ever insider trading case involving cryptocurrency markets. Last month, I announced the first ever insider trading case involving NFTs. Regardless of whether the fraud occurs on the blockchain or on Wall Street, the message is clear: fraud is fraud. In addition, Williams said, the Southern District of New York will remain relentless in prosecuting fraudsters, wherever they may be found.
The charges against Ishan Wahi carry a maximum sentence of 20 years for each count of wire fraud conspiracy and wire fraud.
Additionally, Nikhil Wahi and Ramani face charges of wire fraud conspiracy and wire fraud, each punishable by 20 years in prison.
This report may only have had its headline and picture reworked by the Business Standard staff; the rest is autogenerated from a syndicated feed.
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