When cryptocurrency exchange Coinbase announces that it supports trading of a new token, its value usually explodes. If someone buys a lot before a new token goes public, they can expect to benefit a lot from the rise in value. This also means that the news of the new token listing involves insider trading . Coinbase employee Ishan Wahi joined in October 2020 and was allowed to participate in new token discussions in August 2021. He disclosed the news of the new token to his brother and friends, who bought the tokens in bulk before the official announcement. The problem is that cryptocurrency transactions are exposed via the blockchain, a situation that Cobie, a Twitter user who focuses on cryptocurrencies, was quick to notice, and Cobie’s post prompted Coinbase’s chief security officer to announce an investigation. Wahi tried to escape back to India but was stopped by law enforcement at the airport. U.S. prosecutors in New York formally announced on Thursday that they had filed insider trading charges against Wahi, the first accusations of insider trading involving cryptocurrencies.
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