A week ago, US criminal authorities arrested three alleged perpetrators for illegal trading activities. However, the person responsible for the arrests is making further allegations. He considers insider trading on Coinbase to be a systemic problem of the crypto exchange.
Tweet leads to arrests for insider trading
After a user alerted crypto enthusiast @Cobie to a suspicious Ethereum address, he dealt with the case. The user’s accusation: insider trading on Coinbase.
Cobie sees this accusation as confirmed. He sent out a tweet in April. There he publishes the suspicious address. Almost three months later, there are three arrests in this incident.
Coinbase Insider Trading: SEC Files Lawsuit against Ex-Employee
The US Securities and Exchange Commission has filed charges against a former Coinbase employee. The accusation: insider trading
The three people are a former Coinbase employee, his brother and a friend.
Ishan Wahi, who was responsible for listing cryptocurrencies on the homepage as Coinbase’s product manager, tried to head to India when Coinbase was conducting an internal investigation.
The FBI stepped in and arrested the suspect. All this is clear from an indictment of the US authorities. In addition, there are references to the occasion of the investigation. The criminal authorities are actually quoting Cobie’s tweet.
A Story for the ages pic.twitter.com/oMlr8FM70d
– Cobie (@cobie) July 21, 2022
The trading activity to which the tweet of April 12, 2022 refers was caused by Ramani on or around April 11.
It’s called there. Ramani is a friend of Ishan Wahi and got information from him that made insider trading possible, because Wahi, as the person responsible, of course, knew which coins he would list next on the Coinbase homepage.
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Ex-employee Nate Chastain is arrested for insider trading on the NFT marketplace OpenSea. Now he could face long years in prison.
Cobie Makes Allegations against Coinbase
In an interview with YouTuber Coffeezilla, Cobie explains:
I don’t feel great about the arrest, because the person I criticized is not the one who was arrested. The latter is only collateral damage. Actually, I criticized the institution.
According to the latest findings, the insider trading of the three defendants earned them profits of $ 1.5 million. Cobie therefore considers them to be small fish within a larger, fraudulent system.
I don’t think a guy who steals only 1.5 million over an 18-month period is the interesting part of the story.
Further he continues:
The interesting part is that an institution made him responsible for the listings and was unable to identify him for his insider trading. Anonymous users can then find this information via the Internet and there is suddenly an internal investigation.
Just one day after Cobie’s tweet in April, Coinbase responded and announced those investigations. Cobie, however, considers this behavior to be blenderei. He suspects that insider trading is a systemic problem of Coinbase.
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