The brother of a former Coinbase product supervisor has pleaded responsible in a cryptocurrency insider buying and selling case. In line with the U.S. Division of Justice (DOJ), he’s going through as much as 20 years in federal jail.
The U.S. Division of Justice (DOJ) introduced Monday that Nikhil Wahi, the brother of a former product supervisor at Coinbase World Inc. (Nasdaq: COIN), “pled responsible to at least one depend of conspiracy to commit wire fraud in reference to a scheme to commit insider buying and selling in cryptocurrency property.” The DOJ calls it the “first-ever cryptocurrency insider buying and selling case.” Nikhil Wahi was arrested in July.
His brother, Ishan Wahi, labored at Coinbase as a product supervisor assigned to the cryptocurrency buying and selling platform’s asset itemizing group starting in October 2020.
The Justice Division defined that on a number of events between July 2021 and Could 2022, Nikhil Wahi profited from utilizing “confidential Coinbase details about which crypto property have been scheduled to be listed on Coinbase.”
After getting ideas from his brother as to which crypto property Coinbase was planning to checklist on its exchanges, Nikhil Wahi “used nameless Ethereum blockchain wallets to amass these crypto property shortly earlier than Coinbase publicly introduced the listings,” the DOJ detailed, elaborating:
Following Coinbase’s public itemizing bulletins, on a number of events Nikhil Wahi bought the crypto property for a revenue.
The DOJ defined that to hide his purchases, Nikhil Wahi “used accounts at centralized exchanges held within the names of others, and transferred funds, crypto property, and proceeds of their scheme via a number of nameless Ethereum blockchain wallets.”
Nikhil Wahi “additionally commonly created and used new Ethereum blockchain wallets with none prior transaction historical past to be able to additional conceal his involvement within the scheme,” the Justice Division added, noting:
Nikhil Wahi, 26, of Seattle, Washington, pled responsible to at least one depend of conspiracy to commit wire fraud, which carries a most sentence of 20 years in jail.
The U.S. Securities and Trade Fee (SEC) additionally slapped the 2 brothers and their buddy with insider buying and selling prices. Nikhil Wahi and the buddy “allegedly bought not less than 25 crypto property, not less than 9 of which have been securities, after which usually bought them shortly after the bulletins for a revenue. The long-running insider buying and selling scheme generated illicit income totaling greater than $1.1 million,” the SEC detailed.
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Scammers stole millions of dollars in cryptocurrency from remote job seekers in an elaborate scheme. New York Attorney General Letitia James has filed a lawsuit to recover over $2 million that she said was stolen from New Yorkers and others nationwide.
Scammers used unsolicited text messages to lure victims with promises of flexible, well-paying remote work opportunities. They claimed the job involved reviewing products online to generate market data. However, victims were told to open cryptocurrency accounts and maintain balances matching the price of products they were reviewing.
While victims believed they would receive their investments plus commissions, the funds were instead transferred into the scammers’ crypto wallets. The fake product reviews took place on a fraudulent website created as part of the scheme.
The lawsuit details seven people who were scammed. One victim, a New Yorker, lost over $100,000 while another victim from Florida lost over $300,000. These cases show the significant financial and emotional impact on the victims.
James’ office, working with Queens District Attorney Melinda Katz and her cryptocurrency unit, traced the stolen funds to specific digital wallets. Over $2 million in cryptocurrency has been frozen, ensuring it can be returned to victims.
“Deceiving individuals seeking remote work is cruel and unacceptable,” said James. “We’re committed to holding scammers accountable and recovering stolen funds.”
A federal grand jury in Georgia recently indicted three Russian nationals for their involvement in running illegal cryptocurrency mixer services that helped criminals launder money. The indictment, announced on January 7, 2025, involves Roman Vitalyevich Ostapenko, Alexander Evgenievich Oleynik, and Anton Vyachslavovich Tarasov. These individuals are accused of operating two online services called Blender.io and Sinbad.io, which helped criminals hide the source of their illegal funds.
A cryptocurrency mixer is a tool used to mix cryptocurrencies like Bitcoin, making it harder for authorities to trace the origin of digital money. These services are attractive to criminals involved in activities such as ransomware attacks and fraud, as they allow them to send funds anonymously.
Ostapenko and Oleynik were arrested in December 2024, while Tarasov is still on the run. The three men face serious charges related to money laundering and operating unlicensed financial businesses. If convicted, they could face up to 20 years in prison for laundering money and up to five years for running an unlicensed business. The indictment follows the earlier shutdown of the Sinbad.io service after it was seized by law enforcement in 2023.
Blender.io and Sinbad.io were both cryptocurrency mixers, meaning they offered a way to send digital money anonymously. For a fee, these services allowed criminals to send their funds without revealing where the money came from. This feature made these mixers attractive to those who wanted to hide stolen funds or profits from illegal activities, such as ransomware attacks, fraud, and even theft of virtual currencies.
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Blender.io operated from 2018 to 2022 and was known for its promise of anonymity. It advertised a “No Logs Policy,” meaning it claimed to have no records of transactions. The site also reassured users that no personal details were needed to use the service. This allowed criminals to send and receive Bitcoin without leaving a trace of their identity.
After Blender.io was shut down in 2022, the defendants launched Sinbad.io, which offered similar services. This service continued until law enforcement authorities took it down in November 2023, marking a significant victory in the fight against cybercrime. The shutdowns of both services were the result of coordinated efforts by authorities from several countries, including the U.S., the Netherlands, Finland, and Australia.
Both Blender.io and Sinbad.io were not only used by ordinary criminals but were also linked to state-sponsored hacking groups. For instance, Blender.io was used by North Korean hackers to launder funds stolen through cyberattacks. Similarly, Sinbad.io had connections to cybercriminals who targeted businesses and individuals. These cryptocurrency mixers served as a vital tool in helping these criminals profit from their illegal activities, making it harder for authorities to trace the stolen money back to its original source.
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The investigation into Blender.io and Sinbad.io showcases the power of international cooperation in tackling cybercrime. The indictment was made possible by the joint efforts of law enforcement agencies from different countries, including the U.S. Department of Justice, the FBI, the Netherlands’ Financial Intelligence Service, and Finland’s National Bureau of Investigation. Their collaboration helped track down the operators of these illegal services and ultimately led to their takedown.
In addition to the U.S. authorities, international agencies like the Australian Federal Police and Finland’s National Bureau of Investigation played key roles in the investigation. Their contributions were essential in identifying the people responsible for running these cryptocurrency mixers and disrupting their illegal activities.
The importance of international cooperation cannot be overstated. Cybercrime often crosses national borders, and without the efforts of multiple countries working together, it would be much harder to stop these crimes. The arrests of Ostapenko and Oleynik, along with the ongoing search for Tarasov, send a strong message to cybercriminals around the world: law enforcement agencies are committed to identifying and holding accountable those who operate illicit financial networks.
This case highlights how dangerous these cryptocurrency mixers can be in enabling serious criminal activities. By breaking down these networks, authorities are making it harder for criminals to profit from their wrongdoing, while also protecting public safety and national security.
To read the original order please visit DOJ website
A Wisconsin congressman will head the House Subcommittee on Digital Assets, Financial Technology, and Artificial Intelligence.
Bryan Steil, a Republican representing the 1st Congressional District in southeast Wisconsin, was appointed to the role Thursday.
His subcommittee’s jurisdiction includes things like mobile banking and non-fungible tokens, or NFTs. It’ll also be the first stop for legislation on cryptocurrency.
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Digital currencies have a murky federal regulatory status. That allowed President Joe Biden’s Securities and Exchange Commission Chair Gary Gensler to go after the crypto industry.
The industry responded by spending over $130 million in 2024’s election cycle through its PAC, Fairshake.
It spent $764,206 to independently help re-elect Steil, according to campaign finance database OpenSecrets.
In a statement, Steil said “technologies like financial apps, digital assets, and machine learning revolutionize our economy,” adding that he looks forward to continuing “to provide the rules of the road to move our economy into the future.”
Steil was appointed to his new role by House Financial Services Chair French Hill, R-Arkansas. Hill’s top campaign contributors include the CEOs of the crypto exchange platform Coinbase and the Charles Schwab Corporation.
One of his legislative priorities has been a bill that would set up clearer, crypto-friendly federal financial regulations, which passed the House with bipartisan support in May. He called Steil “instrumental” in passing that bill, and in overturning an SEC rule requiring crypto exchanges to list their digital assets as liabilities on their balance sheets.
Now, the Janesville native will oversee hearings and votes on new crypto-related legislation.
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