Coinbase is set to receive $470,000 from Nikhil and Ishan Wahi as restitution for expenses related to the Department of Justice’s investigation into alleged insider trading.
The payment will cover the cost of five grand jury subpoenas for documents and information, as well as lost wages for employees who focused on the investigation by the Special Investigations and Security Departments.
Coinbase’s lawyers requested the reimbursement under the Mandatory Victim Restitution Act, which ensures that victims are compensated for expenses and lost income resulting from investigations into crimes such as wire fraud.
The court document states that the defendant, Nikhil Wahi, must make installment payments towards the restitution while serving his 10-month prison term. He may do so through the Bureau of Prison Inmate Financial Responsibility Plan, and any unpaid amount upon his release will be paid in monthly installments of at least 10% of his gross income.
Ishan Wahi, a former Coinbase employee and Nikhil’s brother is awaiting sentencing on May 9. The brothers and their accomplice, Sameer Ramani, were accused of trading over 20 crypto assets in a scheme that operated from June 2021 to April 2022, netting over $1 million in profits. Both the Wahi brothers and Coinbase deny the SEC’s claim that the assets traded were securities.
The SEC has until June 15 to review and discuss the settlement agreement with the Wahi brothers, and the brothers will have until July 15 to respond.
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