By Chris Prentice
NEW YORK (Reuters) – The U.S. Securities and Exchange Commission is nearing a settlement with a former Coinbase (NASDAQ:) Global Inc product manager in a landmark case of insider trading involving cryptocurrency, according to a court filing this week.
The SEC has reached “an agreement in principle” with Ishan Wahi to resolve its claims against him, the agency said in a court document filed on Monday.
Regulators have accused Wahi, his brother Nikhil Wahi and a close friend of reaping at least $1.1 million in illicit profits by using nonpublic information related to crypto listing announcements he obtained as an employee of Coinbase.
The case has drawn significant attention as one of the latest actions by a regulator that has grown increasingly aggressive on policing the crypto industry.
Last month, a trade group urged a judge to dismiss the matter, noting it could have wide-ranging consequences for the digital asset industry and harm crypto investors.
In its Monday filing, the SEC said it is also engaged in “good faith discussions” with Nikhil Wahi that may resolve the claims against him.
The Wahi brothers have both pleaded guilty to parallel criminal charges. In February, they asked a judge in Seattle to dismiss the SEC’s case, saying the charges represent an “abuse of power.”
Any settlement recommended by staff will need to be reviewed and approved by the SEC’s commissioners, “a process that can take a a number of weeks,” the regulator said.
A lawyer for the Ishan Wahi and a spokesperson for the SEC both declined to comment. A lawyer for Nikhil Wahi did not respond immediately to requests for comment.
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