on July 22, Beijing time, according to multiple media reports, prosecutors from the U.S. Securities and Exchange Commission (SEC) and the Southern District of New York arrested the former product manager of Coinbase. Bloomberg reports that Ishan Wahi, a former product manager at Coinbase, disclosed the Coinbase token listing to his brother and friends Nikhil Wahi and Sameer Ramini, respectively.
Coinbase officially tweeted that Coinbase identified the individuals and provided information about them to the DOJ. Coinbase proactively monitors illegal activity and investigates alleged misconduct. Hand over bad actors to law enforcement and they face real legal consequences, including potential jail time.
The matter was mentioned in April 2022, and Twitter KOL Cobie said in his tweet that before a Coinbase listing, it was discovered that about 24 hours before the token went live, a purchase of hundreds of thousands of dollars appeared. The token’s ETH address, which only appears in the Coinbase asset list.
And when the investigative news came out, Cobie said that after he tweeted about insider trading, he had been tweeting about the bad situation related to the Coinbase listing for months, and now, Coinbase is playing the “hero” catch .
Cobie questioned Coinbase’s ability to oversee, as there were several other wallets associated with front-running transactions he discovered after his tweet.
After Cobie identified insider trading in April, Coinbase security officer Martin said an investigation had been launched.
After the news was released, Martin publicly stated on the matter,
1/ As promised, an update on this investigation can now be shared. As mentioned earlier, such investigations are not quick, but are critical to maintaining a level playing field.
2/ During the investigation, a Coinbase employee was identified who was suspected of inappropriately sharing confidential information about Coinbase’s asset listing. Two non-Coinbase individuals with whom this individual appears to be working were also identified.