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Ishaan and his brother are in custody, arrested on Thursday and facing charges of cheating and cheating, while Ramini is yet to be arrested.
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Broadly speaking, the SEC says Ishaan violated securities laws, marking its first insider trading with The case in the crypto sector.
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The SEC says that of the 25 tokens for which Ishan provided confidential information, nine were securities.
The US Securities and Exchange Commission (SEC) has highlighted nine tokens it says are securities, the details of which come from a landmark case against a former Coinbase manager.
The SEC’s case is against Coinbase’s former product manager Ishaan Wahi and two others – Nikhil Wahi (Ishaan’s brother) and Sameer Ramini, a friend. The former Coinbase manager is accused of leaking confidential information about the token listing announcement, implicating the other two in a plan that lasted nearly a year and included $1.1 million in profits.
,Prior to those announcements, which usually resulted in an increase in asset prices, Nikhil Wahi and Ramani reportedly bought at least 25 crypto assets, of which at least nine were securities, and then made announcements generally for profit. Sold them soon after.“SEC Said” Press release,
9 Token Deemed Securities
The SEC previously stated that most tokens in the crypto sector are securities, and there is in fact an active case against Ripple Labs over the XRP coin.
In this latest installment of its fight to bring deemed securities under SEC laws, it identifies nine “security” tokens.
What are these tokens? SEC sheds light on them Here,
LCX (LCX), Amp (AMP), Rally (RLY), Rari Governance (RGT), Power Ledger (POWR), XYO Network (XYO), DFX Finance (DFX), DerivaDAO (DDX) and Chromatica (KROM).
Commenting on these tokens, SEC Enforcement Director Gurbir S Grewal said that the main concern is “not with the label, but with the economic realities of an offering.”
,In this case, those facts confirm that several crypto assets were issued, and, as alleged, the defendants engaged in specific insider trading prior to their listing on Coinbase.,” He added.