In a historic plea that will set a strong precedent for how the federal government can regulate the industry, one of the defendants in the first-evercryptocurrencies insider trading cases pleaded guilty to a wire fraud conspiracy charge on Monday.
The center of the first ever insider trading case is a former coinbase product manager.
The brother of a former product manager submitted a plea in a federal court.
The Department of Justice charged the three men with wire fraud conspiracy and wire fraud after the Securities and Exchange Commission charged them with insider trading.
The man will be sentenced on December 13 after admitting in court that he executed trades based on non-public information.
The wire fraud conspiracy charge against Ishan Wahi does not rest on the issue of whether the assets are securities or not.
It was wrong for me to receive confidential information from Coinbase and make trading decisions based on it.
The landmark charges in July indicated a clear stance from the SEC that some cryptocurrencies are securities. Brian wrote that the charges were an "unfortunate distraction" from the investigation into the Wahis and Ramani.
The company's shares are down 67.2% year-to-date, which coincides with an industry wide collapse and a decline in the price of the digital currency. In the month of September, the two assets rallied, with the former up 11 percent and the latter up 25 percent.
The ex-manager and another person were indicted for their alleged involvement in a $1.1 million insider trading scheme.
The brother of an ex-coinbase worker is a criminal.
It's gotta catch them all. The SEC brought in the first trading action of its kind in the industry.
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