Coinbase is Cutting 950 Employees (20%) | Brother of Former Employee 10 months Sentence for Insider Trading

Reuters | Manya Saini and Niket Nishant | Jan 10, 2023

Unsplash Clay Banks disappointed employee - Coinbase is Cutting 950 Employees (20%) | Brother of Former Employee 10 months Sentence for Insider Trading

Image: Unsplash/Clay Banks

Coinbase Global Inc said on Tuesday it will cut about 950 jobs, or 20% of its workforce, as part of a restructuring plan that marks the third round of layoffs for the cryptocurrency exchange since last year.

  • The company, whose shares were up 3.3% at $39.52, said it expects to incur about $149 million to $163 million in restructuring expenses.
  • "The entire industry is going through a crisis of confidence and trading volume remains very weak. This job cut is a reflection of the current challenging environment," Oppenheimer analyst Owen Lau said.
  • "This (job cuts) is a move that can help with near-term operating leverage," said Mizuho analyst Ryan Coyne, adding that it would not fix the underlying issue of rapidly deteriorating volumes. "It is going to require much more significant cost cutting to accommodate the current volume run rate."

See:  Coinbase: $100m Fine to New York State Regulators for Longstanding Compliance Failures

Coinbase Chief Executive Brian Armstrong:

We also saw the fallout from unscrupulous actors in the industry, and there could still be further contagion.  We will be shutting down several projects where we have a lower probability of success.

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Decrypt | Mat Di Salvo | Jan 10, 2023

A former Coinbase employee's brother has been sentenced for his role in a crypto insider trading scheme.

  • Nikhil Wahi, brother of former Coinbase product manager Ishan Wahi, pleaded guilty in September to one count of conspiracy to commit wire fraud. In an order signed on January 4, U.S. District Judge Loretta Preska sentenced Wahi to 10 months in prison.
    • Ishan Wahi (former employee) has pleaded not guilty to the charges.

Coinbase Complies: Starting Apr 4 Monitor Canadian Transactions Above CA$1,000

  • Prosecutors said last year that Ishan Wahi, while an employee at the San Francisco-based crypto exchange, allegedly provided information regarding upcoming token listings on Coinbase to his brother Nikhil Wahi, and his friend, Sameer Ramani.
  • U.S. prosecutors have called this the first insider trading case involving cryptocurrency.
  • It is alleged by U.S. authorities that $1.1 million was pocketed by the trio. The SEC also filed civil charges against the trio over the alleged scheme.

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