The Attorneys for Siblings Ishan and Nikhil Wahi Need the Case Tossed out, Arguing That, The Securities and Exchange Commission was Off-Base when it Charged the Pair.
A Former Product Manager at Cryptocurrency Exchange Coinbase has moved to Excuse Charges of Alleged Insider Trading, with his Lawyers Arguing the Tokens he Allegedly Traded were not Securities.
Lawyers Representing Ex-Coinbase worker, Ishan Wahi, and his sibling, Nikhil Wahi, Filed a Motion on Feb. 6 in the United States District Court for the Western District of Washington to excuse charges laid by the Securities and Exchange Commission.
The SEC charged the Siblings and their Associate, Sameer Ramani, with insider Trading last July, Asserting the Triplet made $1.1 million using Ishan’s tips on the timing and names of Tokens in Upcoming Coinbase listings.
In an over 80 page archive, the lawyers Outlined how the SEC was “off-base” in its Charges.
They Contended the Cryptocurrencies Allegedly Traded by the Wahi’s didn’t fit the legal Meaning of a Security, as they had no “Investment Contract […] Composed or Implied,” Comparing them rather to Baseball Trading cards and Beanie Babies.
They Contended that Token Developers have “No Obligations Whatsoever” To buyers on the Secondary Markets, adding:
“With Zero Contractual Relationship, There can’t be an ‘Investment Contract.’ It is that basic.” The Tokens, The lawyers Contended, were also all Utility Tokens. They Emphasized the Tokens’ Essential use is on a platform rather than as Investment Products.”
The Wahi’s lawyers lambasted the SEC for its apparent attempt at “attempting to seize wide regulatory jurisdiction over a massive new industry via an enforcement action.”
The Stock was disliked by the Token.The Object of Every Token was to Facilitate activity on the underlying platforms and to enable each Network to develop and develop.
The SEC Asserts that at least nine of the Cryptocurrencies purchased by the brothers and sisters are Securities and that they sold them for a profit after their listing.
“If the SEC Truly believes Digital Assets are Securities, it should Participate in a Rulemaking or other Public Proceeding Explicating that view and Providing Direction to Regulated Parties on its Implications.”
Commodity Futures Trading Commission Commissioner Caroline Pham has recently Expressed concern at the conceivable “expansive implications” of the case.
She said the SEC’s Actions don’t Address the question of whether some Cryptocurrencies are securities through a “Straightforward” Process that Develops “Appropriate policy with master input.”
The Wahi siblings and Ramani also had to deal with Penalties from the U.S. Attorney’s Office for the Southern District of New York relating to wire fraud and wire fraud Conspiracy.
Nikhil Conceded to the Charges and was Condemned to 10 months in prison for wire Fraud Conspiracy in January. Ishan was Acquitted of the charges in August. It seems that Ramani is still huge.The motion was endorsed by 10 attorneys from five separate law offices.
If the motion to excuse is denied by District Judge Tana Lin, the case will continue.
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