By Matthew Russell Lee, Patreon Maxwell Book
SDNY COURTHOUSE, Jan 10 – In what at least the defense is calling a novel crypto currency prosecution for insider trader, Ishan Wahi and Nikhil Wahi of Coinbase were arraigned on August 3, and their lawyer(s) made arguments about moving to dismiss. Both Wahi initial bond orders, 12 pages, on Patreon here
On January 10, 2023, after pleading guilty, Wahi was sentenced to 10 months: " Defendant Nikhil Wahi present with his attorney Priya Chaudhry. AUSA Noah Soloweijczyk present. The defendant is sentenced to: 10 months incarceration followed by 2 years of supervised release. All standard terms and conditions of supervised release with the special conditions of: obeying the immigration laws and searches. Forfeiture in the amount of $892,500.00; special assessment in the amount of $100 to be paid promptly. Restitution deferred for 90 days. The defendant is to surrender to the facility designated no later than February 6, 2023."
Inner City Press live tweeted the earlier proceeding, here
OK - as promised, now Co*nbase Wahi's arraignment, before SDNY Judge Preska. Both defendants plead not guilty.
AUSA Solowiejczyk: We proposed a $1 million bond for Ishan Wahi, secured by funds in a brokerage account, approximately $150,000 when liquidated.
AUSA: Can transfer funds to pay attorneys' fees. [Why then did also crypto Eddy Alexandre today say his lawyer Bove is paid by "friends" / investors because all of his assets are frozen?
AUSA: For Nikhil Wahi, the security is $75,000.
Nikhil Wahi's counsel [Priya Chaudhry, who also represented Jen Shah of #RHOSLC, who recently pled guilty -- despite Judge Sidney H. Stein's order, her unredacted sentencing memo has yet to be put into the docket]
Wahi's counsel: This is not insider trading. There are no securities. There is a case before Judge Furman, US v. Chastain. [Inner City Press also covering that]. We intend to move to dismiss as this is not an insider trading case...
Wahi's counsel: Co*nbase was testing the tokens, people knew about it. So there's no property, and therefore no wire fraud issue. We will move to dismiss. Mr. Wahi was stopped at the airport and his electronics were seized under a forthwith grand jury subpoena
Wahi's counsel: We expect robust motions. AUSA: This prosecution is consistent with Carpenter & its progeny... All devices were lawfully obtained & searched.
Wahi's counsel: We'd like motions due in Jan, replies Feb 13.
The Court: And we'll get together March 22 at 10. Adjourned.
Previously, the US Attorney's Office said it was "charging ISHAN WAHI, a former product manager at Coinbase Global, Inc. (“Coinbase”), NIKHIL WAHI, and SAMEER RAMANI, with wire fraud conspiracy and wire fraud in connection with a scheme to commit insider trading in cryptocurrency assets by using confidential Coinbase information about which crypto assets were scheduled to be listed on Coinbase’s exchanges."
On September 12, this: "Change of Not Guilty Plea to Guilty Plea as to Nikhil Wahi (2) Count 1... The defendant withdraws his previous plea of not guilty and enters a plea of guilty to Count One of the Indictment. Sentencing scheduled for December 13, 2022 at 12:00 pm. "
In mid November, Wahi's motion for permission to travel pre-sentencing was denied, in part because filed late: "MEMO ENDORSEMENT as to Nikhil Wahi (2) denying [52] LETTER MOTION addressed to Judge Loretta A. Preska from Priya Chaudhry dated 11.11.2022 re: Permission to Travel to San Fransisco. ENDORSEMENT: Mr. Wahi's request for approval to travel is denied due, among other things, to the lateness of the request. (Signed by Judge Loretta A. Preska)."
The case is US v. Wahi, et al., 22-cr-392 (Preska)
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