Crypto Heist Unveiled: How the Wahi Brothers Manipulated the Market – 255

It gets even crazier here we are we do Have more information coming from the SEC Regarding the coinbase insider trading And this is really funny because At the end of the day what we've found Is you can't trust centralized exchanges At all and even if they weren't tied to These problems of being kyc'd and Completely doxing your person and Yourself to the IRS or to the government In general and then you run right into Well even these exchanges are practicing You know questionable They have questionable behaviors Surrounding you know what they're doing In the back end and former coinbase Manager and his brother agreed to settle Insider trading charges relating to Crypto asset securities The Securities and Exchange Commission Today announced that former coinbase Product manager ishan wahi and his Brother Nikolai wahi or Nick Hill well He's something like that agreed to Settle charges that they engaged in Insider trading through a scheme to Trade ahead of multiple announcements Regarding at least nine crypto asset Securities that would be made available For trading on the coinbase platform is Sean and Nicole wahi or wahi there we go Each agreed to be permanently enjoyed Enjoined from violating section 10B of

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The Securities Exchange act and Rule 10 B-5 and to pay discouragement of Ill-gotten gains plus pre-judgment Interest here's the weird part that I Never really understand about a lot of These settlements when we saw it you Know obviously with like Mount gox and Stuff like this the government Confiscates those or takes those Penalties but it never goes back to the Public now of course this is a little Bit different than purely shutting down Something like Mount goxon confiscating Other people's actual cryptocurrency That was on the platform and then Selling it back to the them later on Down the line which is what happened Here recently and liquidating that and The end user never getting anything Right this is more like I'm taking a Fine for manipulation but once again That doesn't go back into the pockets of The people that it actually affected or Hurt right the people that were getting Dumped on when that coin was listed on Coinbase It's it's it's it's wild right the only The only beneficiaries of this is like The SEC at the end of the day Um the wahi brothers Assets in the Criminal action if approved by the court And the SEC determined not to seek civil Penalties in light of the wahi brothers Prison sentences the sec's complaint

Filed on July 21st of 2022 in the U.S District Court of the Western District Of Washington allege that wall employed At coinbase ishan wahi helped to Coordinate the platform's public listing Announcement announcements that included What crypto assets would be made Available for trading according to the Complaint coinbase treated such Information as confidential and wardened Its employees not to trade on the basis Of or tips others or tip others with That information however from at least June of 2021 to April of 2022 in breach Of his duties ishan repeatedly tipped The timing and content of upcoming Listing announcements to his brother Nick hilwahi and his friend Samir Romani Ahead of those announcements we which Usually resulted in an increase in the Assets prices Nick Nick Hill and Romani Allegedly purchased at least 25 crypto Assets at least nine of which were Securities and then typically sold them Shortly after the announcements for a Profit the wahi brothers agreed as part Of the settlement not to deny the sec's Allegations quote while the Technologies At issue in this case may be new the Conduct is not we allege that ishan and Nick Hill respectively tipped and traded Securities based on material non-public Information and that's insider trading Pure and simple said gurbier gray Grewal

Grewal there we go director of the sec's Division of enforcement the federal Securities laws do not exempt crypto Asset Securities from the prohibition Against insider trading nor does the SEC I am grateful to the SEC staff for Successfully working to resolve the this Matter subject to court approval is Sean And nikhil consented to the entry of Final judgments that permanently Enjoined them from violating section 10B Of the Securities Exchange Act of 1934 And Rule 10b-5 there under in the Criminal action is Sean and Nick Hill Pled guilty to conspiracy to commit wire Fraud ishan was sentenced to 24 months In prison in order to Forfeit 10.97 Ether and 9440 tether and Nick Hill was sentenced To 10 months in prison and ordered to Forfeit 892 500 US Dollars the sec's Investigation was conducted by Michael Brennan and it goes down the list the Case was supervised by Paul Kim and the Litigation was led by Daniel Marr and Peter Lawless and supervised by Olivia Coe the SEC appreciates the assistance Of the U.S attorney's Office four of These or for the southern district of New York and the FBI I mean at the end of the day right this Is we follow both of these up like back To back with a couple of like important Pieces of information for people that

Are participating within cryptocurrency And in my humble opinion it does point To of course that the the the Ideal of not your keys not your crypto To avoid centralized exchanges utilize Them for the things that you need to Utilize them for and then get out and That is really backed up here recently By a bunch of failures that have started To take place uh of some other Central Uh centralized exchanges now a lot of These are not even confirmed which is Crazy but we're starting to see Withdrawals being suspended at mexc with No announcement from mexc themselves in Addition to that we had hotbed fail last Week right and then s-t-e-x is now about The shutdown as well so we're having a Ton of centralized exchanges shut down And get liquidated this was thought to Be something that was primarily seen at The beginning of this bear run when we Saw collapses of like FTX and so on but Now we're starting to see that contagion Drift over into the rest of the market And from a U.S perspective you really Get stuck with only a couple of Exchanges that don't provide a lot of Different cryptocurrencies so you really Have to start to learn to utilize you Know non-kyc platforms like trade ogre For example or something along those Lines especially as a minor that's Trying to liquidate the other option for

Miners of course here that you may want To pay attention to is mining to things Like Zerg pool or unminable or even nice Hash to get paid out and something that Is supported however all of those Options also have their problems and Issues that come along with it right so It can be a tricky position to be in Especially if you're trying to liquidate For paying for power Etc So maybe you just want to move into Bitcoin I don't know I'd like to hear Your thoughts and opinions in the Comments section below as well as the Live chat I did have a couple other Thoughts here surrounding this as far as Centralized exchanges go and just Pointing out the amount of manipulation Within cryptocurrency as a whole right We have manipulation on the proof of Work side on the fpga side of things for Mining and restriction to bit streams And and the old pump and dump right Where they pump the price of the coin up Dump the hardware dump the coin after They've sold the hardware move on we Also see this with bit main we saw that Most recently with kadena we'll start to See it with other coins once again it Just kind of is the way they perform That so you you already have that Manipulation going on there so not Everything is as is as it seems on the Front right you also have this other

Problem of like each coin Community Trying to encourage more people to buy Buy in but really it just ends up being A Ponzi scheme I suppose really as I get Further and further into cryptocurrency Everything just appears to be a Ponzi Including the US dollar so it's not just You know the cryptocurrency itself and The only way to really combat that is With you know the amount of power Availability you have and the amount of Power or hash rate that you have and I Think that and and I think that that has To go along the lines of established Cryptocurrencies to protect yourself but Then we see the manipulation on of Course the exchange side we've seen a Ton of manipulation on Caspa for mexc We've seen it on uh for Casper on kucoin A lot of this though can just be Exacerbated by the users enabling Trading Bots or utilizing trade bot Services utilizing leverage all of this Sort of stuff so it's not uh it's not Like you can point it directly at a Single individual right or a single Company but all of this manipulation is Almost just compounded as a whole across The collective right it's not a single Point of failure that you can point at And say well if we fix this then we fix The world right it's like when you see It's a nice idea right people always say Like Bitcoin fixes this or fix the money

Fix the world it's like well I like your Idea I think it's a step in the proper Direction but if we're being completely Honest it's clearly not a fix right Thanks for checking out this clip from The crypto mining show you can check out The full episode here or more crypto Content down here also I'd like you to Check out my locals page at son of a Tech.locals.com where you can become a Member for free or choose to be a five Dollar a month supporter that unlocks Additional content

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