The news has been around since last night and it is fitting to face it too to understand what really happened and what role from Coin base also in quote from the pole minorities and whether there may have been an intention to manipulate the prices behind this.
The main content of the news is this: Ishan Wahias it once was Product manager to Coin basewas accused of front run or better than insider tradingthat is, to have bet on tokens and coins which would subsequently have been quoted on Coin base. The mechanism is not difficult to understand even for those who enter this world for the first time.
Every quote on Coin base and on the other most important ones cryptocurrency exchange in the very short term leads to increases in the value of token itself, which of course makes it easy for those who know in advance the tokens that will be listed to collect important winnings. With the small problem that it is a behavior beyond the limits of legality and therefore caused problems Wow, who was reportedly arrested yesterday as he tried to leave the country. Arrest that happened with applause from Manager from Coin base.
Arrests between former Coinbase: what’s going on?
All for about a million dollars. It is certainly beyond the reach of many, but it does not seem that much money could push anyone to organize an operation of this type. Or rather a decidedly reduced gain, if we were to take into account that in all probability Wow will end up spending a significant amount of time in house arrests USA.
In addition to what he would have managed to steal, it is the conduct that was particularly serious because it was prejudicial to any guarantee against users which basically functioned as one exit strategy for easy easy money in the world of new tokens. Tokens that are small cap, and that from the quotes on Coin base they have always, or almost always, seen increases as sudden as they were short-lived.
According to what was reported by Bloombergthrough the New York federal prosecutor’s office, there were the first arrests ever for insider trading in the world of cryptocurrencies (and not of Bitcoin). Last Thursday ishan Wahiwho was trying to get out of the country and who was the entity responsible for quoting new tokens on Coin basewas actually arrested on this serious charge.
And he wanted to be part of the game too SEC (although we do not understand with what jurisdiction) that reported as conduct of Wow and in flagrant violation of various agency regulations relating to fraud prevention.
Today’s arrests are further evidence that Web3 is no outlaw area.
With a bunch of sheriff’s statements that mess up the plans a bit Web 3 and speculative tokens, little to ride on buzzword at the moment, remind our readers that even the accusation of federal prosecutor in USA have strong political connotations.
Our message with these claims is clear: a fraud is always a fraud, whether it happens on the blockchain or on Wall Street.
At the same time as adding it Coin base in fact, he would have offered full cooperation during the investigation recently. A story that many actually already suspected, where the big stock exchanges (and those who control the prices) obviously have a huge competitive advantage in the market, being able to buy before an almost always certain increase.
- With the help of his brother
Wahi would not have operated directly, but by giving this type of information to his brother and a friend. Which obviously will not have escaped the least clever investigators, which then led to the arrest of Wow same.
Not a great crime-genius plan, even considering the small amounts he managed to lose: a miserable million dollars faced with infinite or nearly infinite possibilities. With a lot of shipping to the galleys without going through the street.
Yes, centralization is a problem
Or rather, it is a problem that few players of this size have so much influence in the market because they can offer tempting opportunities to people of questionable moral stature. A centralization that we have already used in this sense, in our opinion, will increase in step with the regulation. Regulations that, at least in this case, will be the reason for the multiplication of the possibility of fraud.
No matter what Does not and laws in other countries, as well as donations for inclusion in national registries, would try to fight on paper. As this news should also show, the effects of the intervention “for the benefit of consumers” do not always reach the desired goals.