• Coinbase joins Ripple, Paxos, and other crypto firms to advocate for new rules and regulations as the SEC is accused of using old rules for completely new technology.
• The SEC and the US Justice Department filed a civil and criminal charge against Ishan Wahi, a former manager in the assets and investing products group at Coinbase Global, and his brother Nikhil Whai, as well as their friend, Sameer Ramani for engaging in insider trading.
• Coinbase strongly opposes the securities fraud charges but admits that the insider trading and wire fraud charges are valid.

Coinbase Joins Ripple to Advocate for New Rules

Coinbase has filed an amicus brief in the SEC v Wahi case in support of the dismissal of the lawsuit. The company joins Ripple, Paxos, and other crypto firms to claim that there is need for new rules and regulations as the US Securities and Exchange Commission (SEC) is accused of using old rules for completely new technology.

SEC Files Civil & Criminal Charges Against Three Individuals

The SEC together with the US Justice Department filed a civil and criminal charge against Ishan Wahi (former manager in the assets & investing products group at Coinbase Global), his brother Nikhil Whai, as well as their friend Sameer Ramani. This was due to insider trading involving first-hand knowledge gathered by Ishan concerning assets that Coinbase planned to support before making an official announcement on Twitter.

Coinbase Opposes Securities Fraud Charges

Coinbase strongly opposes the securities fraud charges brought against them by filing an amicus brief asking for dismissal of this misguided lawsuit. The company stated that assets listed on its platform are not securities henceforth; it does not fall under existing laws or regulations set forth by SEC. Last year, Coinbase petitioned Agency to make rules on digital asset securities as existing ones do not apply to digital assets.

Blockchain Association Files Separate Amicus Brief

In February 2021, Blockchain Association together with Chamber of Digital Commerce also filed a separate amicus brief urging court to dismiss lawsuit given that old securities rule cannot be used on different technology such as digital asset securities.

Ishan Pleads Guilty To Insider Trading & Wire Fraud Charges

Ishan has pleaded guilty to insider trading & wire fraud charges brought against him; however he still denies any wrongdoing related to security frauds. Despite admitting these valid charges brought upon them by SEC; Coinbase still objects strongly towards allegation regarding security frauds leading them to file this amicus brief in order seek dismissal of this lawsuit from court