"I knew that it was wrong to receive Coinbase's confidential information and make trades based on that confidential information," Nikhil Wahi says.
Listen to the CoinMarketRecap podcast on Apple Podcasts, Spotify and Google Podcasts
The brother of a former Coinbase employee has pleaded guilty to the insider trading of cryptocurrencies.
Nikhil Wahi admitted during a virtual court hearing that he made trades based on confidential information, according to the Reuters news agency.
His sibling Ishan — a former product manager at the exchange — continues to deny the charges against him.
Prosecutors claim Ishan disclosed details about the coins that Coinbase was planning to list in order to turn a profit.
It's alleged that he had "detailed and advanced knowledge" of when listings would happen.
Analysts have long pointed to a so-called "Coinbase effect" that means digital assets see prices surge as soon as they're added.
On at least 14 occasions, Ishan allegedly "misappropriated" internal communications to tip off Nikhil or their business associate Sameer Ramani, who remains on the run.
Overall, it's believed the men dealt in 25 different cryptocurrencies, and collectively generated gains of about $1.5 million.
'I Knew That It Was Wrong'
Nikhil Wahi entered his guilty plea during a virtual court hearing in Manhattan. The 26-year-old told Judge Loretta Preska:
"I knew that it was wrong to receive Coinbase's confidential information and make trades based on that confidential information."
Nikhil also confirmed he understood that this plea would lead to his deportation from the U.S. — and mean he would "lose everything that I have worked for."
He is due to be sentenced in December, and Ishan is next scheduled to appear in court next March.
Coinbase had launched an internal investigation into the allegations, and shared its findings with prosecutors.
Cobie, a popular Crypto Twitter account, played an instrumental role in bringing the claims to light.
Coinbase had unveiled plans to take a different approach in April — by declaring which tokens were under consideration for listing in the near future.
Cobie subsequently revealed that a wallet had bought tokens worth hundreds of thousands of dollars the day before this announcement was made — and they all exclusively featured in this blog post.
