An Ex-employee of Coinbase has recently claimed that there are around 74 US lawmakers that faced charges of Insider Trading. However, not even one of these convicted criminals was found guilty.
These convicted members of Congress are set on the path of getting a walk-out-of-jail-free card. They are alleged to have embezzled millions of dollars in the stock market that was not reported to the financial authorities.
These cases have been under the supervision of the Securities and Exchange Commission. However, where at one end SEC overlooked the violations of the congressmen, it pursued the cryptocurrency organizations with an iron grip.
Coinbase has also set a trend of submitting the Amicus brief in the case to support Ripple Labs, another cryptocurrency organization sued by the SEC. On the other hand, a former employee of Coinbase has come forward to talk about the discrimination of SEC dealings with Centralized and Decentralized markets.
Sonam Panchamiya, an associate of the cryptocurrency firm Reed Smith, claimed that the cryptocurrency market is currently plagued with a lack of regulations. Therefore, incidents like pump/dump schemes and other financial crimes go unnoticed.
He further explained that such violations were rife in the stock exchange markets until the financial regulators introduced proper laws to regulate them.
Coinbase Employees to Face Legal Actions on Insider Trading Charges
Coinbase’s former employees, Ishan Wahi, his brother Nikhil, and Sameer Ramani, are facing civil and criminal charges brought by DoJ and SEC. According to these criminal charges, the former Coinbase employees made around $1.1 million by illegal methods such as insider trading and leaking sensitive information.
DoJ has also charged the former product manager of OpenSea, Nathaniel Chastain, with fraud and money laundering. These charges can put the financial violators in jail for up to 20 years.
However, Reed Smith’s firm lawyer, Soham Panchamiya, has claimed that such occurrences have arisen on account of a lack of dedicated cryptocurrency regulations, and it can be solved by the state taking an interest in working towards this issue.