Coinbase Manager Arrested as He Tries to Flee the Country

The manager who was let go from the exchange for trading on inside information was arrested while trying to flee the country.

The Securities and Exchange Commission and the Southern District of New York are accusing a former manager of leaking information to his brother and friend in order to give them early access to the exchange.

It is possible that the arrest is a sign of things to come. It is the first criminal case of its kind.

The night before the interview was to take place, Wahi bought a one-way ticket to New Delhi, according to a new report. The former manager was stopped by law enforcement before he boarded the flight.

According to the filing, he had an "extensive array of belongings" with him.

The case will be used to send a message.

The Manhattan US Attorney said in a statement that Web3 is not a law-free zone.

"Our message with these charges is clear: fraud is fraud, regardless of where it occurs on Wall Street," the statement read.

According to the charges, Wahi made more than $1 million in profit for himself, his brother, and a friend by using inside knowledge.

After they found out about the issue, they put Wahi on administrative leave and then fired him.

The company gave information to the DOJ and terminated an employee, according to a new post by the CEO.

According to the post, "Coinbase takes allegations of improper use of company information very seriously, as demonstrated by our rapid investigation of this matter." We have zero tolerance for this kind of conduct and will not hesitate to take action against any employee that is found to have done anything wrong.

The brother of Wahi has also been taken into custody. The prosecutors are trying to criminalize innocent behavior because they are looking for a scapegoat, according to his lawyer.

It could be bad news for the company.

The company is in the middle of an economic downturn. It laid off more than a thousand people last month.

The cases against Wahi and his brother could be a turning point in the quest for regulators to crack down.

Ian McGinley, a former Justice Department prosecutor, told The New York Times that the two cases were just the beginning of the Department of Justice's efforts to crack down on insider trading.

McGinley said that the cases were brought to send a message to the DOJ.

The ex-coinbase manager has been arrested.

There is more on the leak of the coin.