The brother of a former Coinbase product manager, Nikhil Wahi, has been sentenced to 10 months in prison for wire fraud conspiracy charges, in what is thought to be the first expert trading case including cryptocurrency.

As reported by Reuters, Nikhil Wahi pleaded guilty in September to initiating trades based upon confidential information acquired from his sibling, Ishan Wahi, who was a former Coinbase product manager.Ex-Coinbase manager’s brother sentenced to 10 months in insider trading case https://t.co/Kyy6DqSb9D pic.twitter.com/ruQjwr5i4h!.?.!— Reuters(@Reuters)January 10, 2023 Nikhil Wahi admitted to trading with the use of inside information obtained from Coinbase

. According to the federal district attorneys in Manhattan, Ishan Wahi, a previous item supervisor, had shared confidential information relating to brand-new digital possessions that Coinbase was preparing to contribute to its trading platform, with both his brother and their pal Sameer Ramani.The U.S. district attorneys recommended a prison sentence of between 10 to 16 months for Nikhil Wahi, mentioning the

reality that he had made nearly$900,000 in profits from his prohibited actions. However, his defense attorneys suggested a different outcome, arguing that Nikhil’s inspiration for dedicating the criminal activity was to repay his parents for paying for his college education which he had no prior rap sheet. Related: Coinbase to cut another 20%of its workforce in the 2nd wave of layoffs The sentencing of Nikhil Wahi is taking place amid increased analysis from U.S. prosecutors and regulators toward cryptocurrency companies and their executives. On Jan 4, Coinbase reached a contract with the New York State Department of Financial Services(NYDFS)following an investigation into the business’s compliance program. According to NYDFS, Coinbase has agreed to pay a$50 million fine in reaction to offenses of New York’s monetary services and banking laws and

also to invest$50 million to correct its compliance program. The investigation exposed that Coinbase had numerous shortages associated with anti-money laundering requirements and problems

with its process for onboarding users and monitoring transactions.Coinbase’s concerns appear to continue, as on Jan 10, Coinbase CEO Brian Armstrong officially announced that Coinbase will cut 950 jobs as part of the company’s procedures to minimize the firm’s operating expense by around 25%in the middle of the ongoing crypto winter season.