Damian Williams, the U.S. Attorney in Manhattan, said: “Fraud is fraud is fraud, whether it occurs on the blockchain or on Wall Street.”
After Wahi had been summoned to a Coinbase meeting, he purchased a one way ticket to India, the report says. Law enforcement stopped him from boarding the flight, which was scheduled for May 16 of this year.
Wahi’s lawyers did not comment. Philip Martin, Coinbase’s chief security officer, shared the company’s findings with prosecutors, which led to the action. Coinbase received information in April about the possible wrongdoing, Bloomberg reported Thursday.
“We are committed to doing our part to ensure that all market participants have access to the same information,” Martin said on his Twitter account. “At Coinbase, we actively monitor for illegal activity and investigate any alleged misconduct. In April, we received information about the possible frontrunning of assets shortly before being listed on Coinbase. We immediately launched an investigation into this.”
It’s an ironic statement considering almost all top executives in CoinBase have been dumping their shares and coins on bagholders for months now.
They’ve been one of the biggest enablers of insider trading in crypto.