{"id":548768,"date":"2023-02-07T08:59:10","date_gmt":"2023-02-07T05:59:10","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/former-coinbase-manager-slams-sec-in-motion-to-dismiss-insider-trading-case\/"},"modified":"2023-02-07T08:59:10","modified_gmt":"2023-02-07T05:59:10","slug":"former-coinbase-manager-slams-sec-in-motion-to-dismiss-insider-trading-case","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/former-coinbase-manager-slams-sec-in-motion-to-dismiss-insider-trading-case\/","title":{"rendered":"# Former Coinbase manager slams SEC in motion to dismiss insider trading case"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3bef5119fcd\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3bef5119fcd\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/former-coinbase-manager-slams-sec-in-motion-to-dismiss-insider-trading-case\/#%E2%80%9D_Former_Coinbase_manager_slams_SEC_in_motion_to_dismiss_insider_trading_case_%E2%80%9C\" >&#8221; Former Coinbase manager slams SEC in motion to dismiss insider trading case &#8220;<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/former-coinbase-manager-slams-sec-in-motion-to-dismiss-insider-trading-case\/#Lawyers_slam_SEC_for_regulatory_muscling\" >Lawyers slam SEC for regulatory muscling<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Former_Coinbase_manager_slams_SEC_in_motion_to_dismiss_insider_trading_case_%E2%80%9C\"><\/span>&#8221; Former Coinbase manager slams SEC in motion to dismiss insider trading case &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div class=\"post-content\" data-v-5a4050f8>A former product manager at cryptocurrency exchange Coinbase has moved to dismiss charges of alleged insider trading, with his lawyers arguing the tokens he allegedly traded were not securities.<\/p>\n<p>Lawyers representing ex-Coinbase employee, Ishan Wahi, and his brother, Nikhil Wahi, filed a <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.courtlistener.com\/docket\/63887980\/33\/securities-and-exchange-commission-v-wahi\/\">motion<\/a> on Feb. 6 in the United States District Court for the Western District of Washington to dismiss charges laid by the Securities and Exchange Commission.<\/p>\n<p>The SEC charged the brothers and their associate, Sameer Ramani, with insider trading last July, alleging the trio made $1.1 million using Ishan\u2019s tips on the timing and names of tokens in upcoming Coinbase listings.<\/p>\n<p>In an over 80 page document, the lawyers outlined how the SEC was \u201cwrong\u201d in its charges.<\/p>\n<p>They argued the cryptocurrencies allegedly traded by the Wahi\u2019s did not fit the legal definition of a security, as they had no \u201cinvestment contract [&#8230;] Written or implied,\u201d comparing them instead to baseball trading cards and beanie babies.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2023-02\/4a1065d4-b640-4d64-a91e-9e40f116a2a6.jpg\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>Lawyers for the Wahi brothers argued the tokens allegedly purchased by the pair are akin to physical baseball cards, such as those pictured, which can sell for thousands. Source: <\/em><em><a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Twitter<\/a><\/em><\/figcaption><\/figure>\n<p>They argued that token developers have \u201cno obligations whatsoever\u201d to buyers on the secondary markets, adding:<\/p>\n<blockquote><p>\u201cWith zero contractual relationship, there cannot be an \u2018investment contract.\u2019 It is that simple.\u201d<\/p><\/blockquote>\n<p>The tokens, the lawyers argued, were also all utility tokens. They emphasized the tokens\u2019 primary use is on a platform rather than as investment products.<\/p>\n<blockquote><p>\u201cNone of the tokens were like stock [&#8230;] The very object of each token was to facilitate activity on the underlying platforms and, in so doing, enable each network to develop and grow.\u201d<\/p><\/blockquote>\n<p>The Wahi brothers and Ramani purportedly purchased at least 25 cryptocurrencies before the Coinbase listings \u2014 of which at least nine the SEC asserts are securities \u2014 before selling them for a profit shortly after their listing.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Lawyers_slam_SEC_for_regulatory_muscling\"><\/span>Lawyers slam SEC for regulatory muscling<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The Wahi\u2019s lawyers lambasted the SEC for its <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>arent attempt at \u201ctrying to seize broad regulatory jurisdiction over a massive new industry via an enforcement action.\u201d<\/p>\n<p>They said that the regulator \u201clacks clear congressional authorization to deem the tokens at issue to be \u2018securities,\u2019\u201d adding:<\/p>\n<blockquote><p>\u201cIf the SEC really believes digital assets are securities, it should engage in a rulemaking or other public proceeding explicating that view and providing guidance to regulated parties on its implications.\u201d<\/p><\/blockquote>\n<p>Commodity Futures Trading Commission Commissioner Caroline Pham has previously expressed concern at the possible \u201cbroad implications\u201d of the case.<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Did dYdX violate the law by changing its tokenomics?<\/em><\/strong><\/p>\n<p>She said the SEC\u2019s actions don\u2019t address the question of whether some cryptocurrencies are securities through a \u201ctransparent\u201d process that develops \u201cappropriate policy with expert input.\u201d<\/p>\n<p>The Wahi brothers and Ramani also faced charges from the U.S. Attorney\u2019s Office for the Southern District of New York relating to wire fraud and wire fraud conspiracy.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Ishan Wahi and his legal team at Jones Day filed a strong motion to dismiss in the SEC&#8217;s enforcement action regarding alleged insider trading of 9 tokens. <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/s4WZuZThAp\">https:\/\/t.co\/s4WZuZThAp<\/a> <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/kFJjYvdyJc\">pic.twitter.com\/kFJjYvdyJc<\/a><\/p>\n<p>\u2014 Marisa Tashman Coppel (@mtcoppel) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/mtcoppel\/status\/1622749385640792064?ref_src=twsrc%5Etfw\">February 7, 2023<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Nikhil pleaded guilty to the charges and was sentenced to 10 months in prison for wire fraud conspiracy in January. Ishan pleaded not guilty to the charges in August. Ramani seemingly remains at large.<\/p>\n<p>The motion was signed by 10 attorneys from five separate law firms.<\/p>\n<p>If the motion to dismiss is denied by District Judge Tana Lin, the case will continue.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"law_decoded\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/former-coinbase-manager-slams-sec-in-motion-to-dismiss-insider-trading-case\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Former Coinbase manager slams SEC in motion to dismiss insider trading case &#8220; A former product manager at cryptocurrency exchange Coinbase has moved to dismiss charges of alleged insider trading, with his lawyers arguing the tokens he allegedly traded were not securities. Lawyers representing ex-Coinbase employee, Ishan Wahi, and his brother, Nikhil Wahi, filed&#8230;<\/p>\n","protected":false},"author":1,"featured_media":548769,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/s3.cointelegraph.com\/uploads\/2023-02\/2ea2659b-a84d-468d-85af-4200bde1fa0b.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74956,74898,71433,55229,70934,67874],"class_list":["post-548768","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-coinbase","tag-sec","tag-court","tag-law","tag-regulation","tag-united-states"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/548768","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=548768"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/548768\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/548769"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=548768"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=548768"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=548768"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}