TechFlow reported, a U.S. court ruled that trading certain crypto assets on secondary markets (such as cryptocurrency exchanges) constitutes securities transactions. The ruling was made in the insider trading case involving former Coinbase product manager Ishan Wahi, his brother Nikhil Wahi, and their friend Sameer Ramani.
The court stated that these crypto assets still claim profitability when traded on secondary markets, thus qualifying as investment contracts.
Ramani has been barred from future violations and ordered to pay civil penalties equal to twice the profits he gained.
Last year, the U.S. Securities and Exchange Commission reached settlements with both Wahi individuals. This case has been called "the first-ever cryptocurrency insider trading case."
