h2: Coinbase employee gets jail time
– Ishan and Nikhil Wahi’s insider trading verdict
– Fine and additional interest on repayments
– Insider trading applies to crypto assets
– Prison sentences for the brothers
The article explores a case of insider trading involving the Wahi brothers and Ishan, a former product manager at Coinbase. The siblings received a guilty verdict and are mandated to pay a fine that includes additional interest on the amount stolen. The SEC’s director of enforcement, Gurbir Grewal, asserts that the US laws on insider trading also govern cryptocurrency assets. Ishan was sentenced to two years in jail, while Nikhil will serve ten months.
The case delved into the question of whether cryptocurrencies are securities, with nine crypto coins trading by the siblings involved. The brothers claim that these coins are not securities, but the SEC previously classified them as such. While Coinbase was not found guilty of the actions of its associate, the tokens considered unregistered securities might mean that Coinbase is still liable for the sale of unregistered securities.
h2: Ripple’s (XRP) Securities Charge
– SEC’s claim against XRP coins
– Implications of Coinbase lawsuit on Ripple
– Digital assets subject to US securities law
– More guidelines on managing and selling coins
The SEC has claimed for a long time that XRP coins are securities, and the ruling on the Coinbase lawsuit could have a bearing on Ripple’s case. According to both the current SEC Chairman Gary Gensler and the former Chairman Jay Clayton, most digital assets are under the purview of US securities laws. This indicates that managing and selling coins comes with added regulations, providing more rules for cryptocurrency trading.
Overall, the article highlights the legal implications surrounding cryptocurrency trading, specifically in insider trading and the classification of coins as securities. The Wahi brothers and Ishan’s case, as well as Ripple’s ongoing battle, provides a roadmap for future legal battles in the cryptocurrency world. It is essential to keep abreast of such developments to stay within the law in the pursuit of cryptocurrency investment and trading.