A former product manager at Coinbase and his brother, who were charged with insider trading by the SEC last year, have moved to dismiss the charges.
Lawyers for Ishan and Nikhil Wahi filed a motion in the Western District of Washington claiming the SEC was wrong in charging the brothers as the cryptocurrencies they traded were not securities.
The lawyers argue that the tokens are utility tokens and their primary use was on a platform rather than as investment products.
The SEC charged the brothers and their associate, Sameer Ramani, with making $1.1 million using insider information on the timing and names of tokens in Coinbase listings.
The Wahi brothers are also facing charges of wire fraud and wire fraud conspiracy from the US Attorney’s Office for the Southern District of New York.
