Coinbase’s management has submitted a unique private opinion to the court in regards to the case involving the former exchange manager.
They deny any criminal wrongdoing and have requested a review of the decision. The Seattle District Court received a motion from Coinbase to dismiss the criminal charges against Nikhil Wahi and Ishan Wahi, who have been accused by the US Securities and Exchange Commission (SEC) of insider trading in securities.
Coinbase management has stated that none of the assets that Ishan Wahi had access to were securities, as the crypto exchange does not deal in securities.
The company’s general counsel, Paul Grewal, reminded the court that Coinbase had repeatedly tried to register with the SEC in order to offer digital asset-denominated securities to customers, but their efforts were unsuccessful.
Regarding the legal investigation against the Wahi brothers, Grewell said that the SEC would have legal right to seek criminal prosecution of the exchange’s employees if they provided comprehensive rules and recommendations beforehand.
Gruell tweeted that the Department of Justice acknowledged this when it charged their former employee and his associates with wire fraud instead of securities fraud, as the assets involved were not securities.
Coinbase’s filing with the court claimed that the SEC is deviating from its primary role and initiating unjustified lawsuits.
They argue that the SEC’s methods of enforcement pose a threat to the US digital market and investors. Grayscale Investments CEO also criticized the SEC for refusing to approve the launch of a bitcoin ETF, citing the regulator’s inability to control the cryptocurrency market.